Creating a marketing channels strategy for European market entry: a case study for eloSpaces Oy
Babanina, Daria (2016)
Laurea-ammattikorkeakoulu
2016
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2016111015993
https://urn.fi/URN:NBN:fi:amk-2016111015993
Tiivistelmä
This thesis is produced as a case study for eloSpaces, Finnish-Chinese startup company based in Espoo, Finland. eloSpaces develops a unique capsule for people to do the focus work and enjoy privacy. The home market for eloSpaces is China and their current aim is to enter also European market in the nearest future. Therefore, the main objective for thesis was to identify the shortest and most efficient market entry strategy for the full product launch in Europe with highest impact on profits. In order to achieve this objective, three research questions were set: examine market situation and possibilities for eloSpaces in Europe; find out limitations of the current product version and desired features by European end-user; and identify the price point for selling and renting the eloSpace.
Knowledge base included literature research on marketing channels phenomena, its strategy, design, and coordination. Within practical research, workplace, hotel and event planning processes, European furniture market, and customer behaviour were examined. Empirical part included conducting of pilot in Radisson Blu hotel, user experience and B2B online surveys, and analysis of all data collected. The main tool for building a market entry strategy was marketing channel design which was used in the final phase of this project.
The results of thesis research were ready market entry strategy for eloSpaces and list of limitations and features of the product to be improved and developed. Testing the product in actual environment showed that the company has to work on privacy and soundproof of the product, ergonomics of the seat, and implement reading light and audio system. Execution of pilot also showed that necessary changes in the marketing and informing processes should be done. It is necessary to explain to potential customers that eloSpace is made of high-quality TPU material, which is environmentally friendly, it has unique design, and provides various benefits for the user. In this way the high price of eloSpace capsule would be reasoned. It was suggested that eloSpaces should work through various intermediaries in Europe such as importers and dealers. The optimal channel should have 1-2 levels, in order to have more control over the intermediary and be able to request end-user data.
As an outcome of the thesis project, eloSpaces was forced to change the business approach and start targeting design and architecture firms with sales offers, instead of hotels and office spaces. In addition, eloSpaces has already established first importer partnership in the UK. It will allow eloSpaces to reach the market as a design object manufacturer and sell on the bigger scale in Europe.
Knowledge base included literature research on marketing channels phenomena, its strategy, design, and coordination. Within practical research, workplace, hotel and event planning processes, European furniture market, and customer behaviour were examined. Empirical part included conducting of pilot in Radisson Blu hotel, user experience and B2B online surveys, and analysis of all data collected. The main tool for building a market entry strategy was marketing channel design which was used in the final phase of this project.
The results of thesis research were ready market entry strategy for eloSpaces and list of limitations and features of the product to be improved and developed. Testing the product in actual environment showed that the company has to work on privacy and soundproof of the product, ergonomics of the seat, and implement reading light and audio system. Execution of pilot also showed that necessary changes in the marketing and informing processes should be done. It is necessary to explain to potential customers that eloSpace is made of high-quality TPU material, which is environmentally friendly, it has unique design, and provides various benefits for the user. In this way the high price of eloSpace capsule would be reasoned. It was suggested that eloSpaces should work through various intermediaries in Europe such as importers and dealers. The optimal channel should have 1-2 levels, in order to have more control over the intermediary and be able to request end-user data.
As an outcome of the thesis project, eloSpaces was forced to change the business approach and start targeting design and architecture firms with sales offers, instead of hotels and office spaces. In addition, eloSpaces has already established first importer partnership in the UK. It will allow eloSpaces to reach the market as a design object manufacturer and sell on the bigger scale in Europe.