Market research in another country - Essay Example

Market Research In Canada Marketing 571 Matthew Bethke, Hayat Chaouki, Regina Mcinnis, Heidi Payton, Nick Schiltz Ralph Schoen February 04, 2013Inside Edge Commercial Interior Services LLC, a revolutionary flooring manufacturer in Canada, is looking to enter the Russian flooring market. Inside Edge has developed an industry changing product called Can-A-Floor, the first flooring with a heating element built in. Inside Edge is always looking to expand its market presence and needs an introductory region to trial its new Can-A-Floor product.

Russia’s climate, economic conditions, and its increasing demand for hard surface floor products make it the ideal spot for Inside Edge to introduce Can-A-Floor to the world. Inside Edge feels Russia is an ideal market for its new product offering. The average temperature throughout the year in Russia is 39 degrees Fahrenheit (Climatetemps.com, 2012). The warmest it gets on average is 75 degrees Fahrenheit, proving to be one of the colder countries on the planet (Climatetemps.com, 2012).

These temperatures alone justify Inside Edge’s entry into the Russian Flooring market similar to Can-A-Floor’s home market of Canada (hence the name). According to "Global Research & Data Services" (2013), “Russian demand for flooring has been growing strongly with an average growth of 10.6% per year between 2002 and 2008. The situation in the market seems to be rather attractive for foreign flooring companies as the growth is predicted to continue in the following years (Global Research & Data Services, 2013).

Because Russians see flooring as a way of establishing a comfortable living, the demand for these products is expected to continue to increase through 2015 (Marketresearch.com, 2013). This encouraging trend and high demand justifies the entry into the flooring market for any flooring manufacturer.Can-A-Floor is an engineered floating floor, similar in concept and design to a laminate, but with a heating element built in. Currently the most popular types of flooring in Russia are laminate and hardwood (Marketresearch.com, 2013).

With Laminate being one of the top two popular flooring materials in the Russian market, Inside Edge can easily justify entering the market with its Can-A-Floor. Russia also is experiencing a declining unemployment rate along with a rising demand for new housing with its expanding middle-class (Marketresearch.com, 2013). The flooring market in Russia is on the rise with a trending increase in demand for all flooring products, home ownership on the rise, and unemployment slowing. These facts show the sustainability of the market while justifying Inside Edge’s entry into the market.

Pricing StrategyOur pricing strategy for entering a new market needs to work with the current economic times of Russia and the entire world alike. Russia has taken on many changes since the fall of the Soviet Union and has been working to build their economy up to a sustainable health. Since 2011 the country’s unemployment has dropped by almost a full percent from 6.6% in 2011 to 6.2% in 2012, and the rates are projected to drop by 1.5% once the data has been collected for 2013.(CIA.gov) There has been a huge increase in the growth of the country to include individuals building new houses or remodeling them, however times are still tough so the need for a quality item at a more reasonable price is needed to ensure the success of our product in Canada.

Can-A-Floor is going to be sold either by the individual tile or in bulk, for those individuals that are purchasing the product in bulk; there will be a price break for every one hundred dollars of 3% spent which will save the consumer money when they use our product for their larger areas. Effectively using this strategy could help to give the product the correct promotion it needs to enter into this tough market. Innovation and technologyThe company has applied innovation through producing a range of differentiated flooring products, which are a sure demand products in the Russian markets, owing to the nature of an increased demand for new homes and heat regulating products, by the ever-growing middle class within the Russian population.

The company has differentiated its products to include polished concrete, carpets, wood products and ceramics (Marketresearch.com, 2013). The company has developed a specialized website and applications, where the sales representatives can research prospects within a few minutes and pass the information to the customers. This has reduced the average time consumed by the sales representatives of Inside Edge Commercial Interior Services LLC in addressing customers, making it possible to sell high volumes and thus increase the company’s profitability (Global Research & Data Services, 2013).

The company has also applied new and relevant technology to develop an online one-stop-shop, where the customers can easily access and purchase its products. Technology has also been applied in manufacturing unique products, such the heat-regulating flooring materials, which helps to keep rooms warm, for cold regions such as Russia. Social and demographicThe social demographic situation for Russia is constantly improving, notably from 2005 onwards. The birth rate has constantly risen, while the death rate is diminishing with each passing year (Caselli, Vallin & Wunsch, 2006).

This means that the prospects of a higher future population are high, making the target of Inside Edge Commercial Interior Services LLC to the Russian market more timely and appropriate, since the demand for housing and consequently flooring materials will certainly increase. On the social front, the most notable vices such as suicide, murder and Alcohol poisonings have consistently declined over several years, making the population more naturally stable (Caselli, Vallin & Wunsch, 2006). This creates a high prospect for a productive population, which is the basis of the target market by the company.

ReferencesCaselli, G., Vallin, J., & Wunsch, G. J. (2006). Demography: Analysis and synthesis : a treatise in population studies. Boston: Elsevier.CIA.gov. (2013). Retrieved from https://www.cia.gov/library/publications/the-world factbook/geos/rs.htmlClimatetemps.com. (2012). Retrieved from http://www.russia.climatemps.com/Global Research & Data Services. (2013). Retrieved from http://public.mailem.fi/globalr/2009-09-15/1764/article_2648_1095264.html Marketresearch.com. (2013). Retrieved from http://www.

marketresearch.com/BRICdata-v3901/Future-Flooring-Products-Russia-Profile-6869350/