An Assessment of “Macro” Environmental Aspects of the Market that has been chosen
Summary of the Key Features:
As a country, the Netherlands are advancing towards a more stable and prospering
community. Economically, the country is on an upward trend with minimal economic threats.
The politics within the Netherlands are moving towards advancement and are undergoing
modifications. The Dutch culture as a whole, is relatively open minded and accepting of different
backgrounds. The Netherlands are a work in progress advancing in the right direction with ideal
core values.
Economic Overview
The Netherlands have shown an upward trend in economic growth since 2014. According
to MarketLine, the growth rate improved by 2.60% in 2018. The Netherlands currently serves as
the main trade hub for Europe and the improvements in exports has contributed to the
Netherlands GDP growth. However, there is a slow growth rate in terms of wages due to the gap
between wage growth rate and labor productivity growth.
Political Overview
The Netherlands are working towards a positive state of change, ranked 5th out of 128
countries to have an open government and have initiated the third Open Government action plan
for July 2018–July 2020. Also they have ranked 7th out of 149 countries of government ensuring
a political parameter. Despite having the absence of government for nearly 7 months back in
2017 the government is looking to expand international trade. A new coalition has been formed
in October 2017 that contains widely different political views which may lead to difficulty in
effective policy making. There were minor setbacks in the ruling coalition that led to a reduction
in senate majority ultimately forcing the coalition to seek outside support to pass laws.
Cultural Overview
The people in the Netherlands also known as the “Dutch” are known to be tolerant and
advocate for social liberty, which is a token and admirable feature of this social system. The
Dutch are known to be accepting of different religions and ethnicities mainly being portrayed as
open minded especially towards emotional displays. They are known to be affectionate people
and they have made it a point to prioritize animals especially dogs alleviating the population of
stray dogs. However, they face similar global issues with equality amongst women and race.
Export Business issues
Currently exporting business issues are minimal with the Netherlands. The Netherlands
are doing well as far as exporting goes, according to MarketLine, exports amounted to
US$964.08bn and imports amounted to US$875.63bn in 2018. Exporting has led to the GDP
growth, and the growing levels of exports are a main force behind improved current account
balance. Overall as far as exports are concerned exportation of products are thriving.
Product Market Level Assessment of the Chosen Market – Domestic Competitors (the firms
operating in your target country)
Competitor Products/Firms
Competitor Firm Product/Brand Name Is this product
manufactured in your
target country?
CEVA Adaptil Manufactured in France
Iams Europe B.V Iams Dog Food Manufactured in Netherlands
Bodhi Dog Bodhi Dog Potty Training Spray Manufactured in the United States
Nestle Purina Petfoods PURINA Dog Food Manufactured in Netherlands
Hill’s Pet Nutrition B.V Hills Dog Food Manufactured in Netherlands
Partner in Pet food NL B.V PPF Dog Food Manufactured in Netherlands
Marketing Strategy of Competitors
Bodhi dog potty Training
When looking at the competitors for this product we saw that many similar competitors to this
product are different potty training sprays. We found that these were the main competitors to this
product due to their similarity in the product. The “best” potty training spray according to a list
we found online at doglab.com highly praised Bodhi Dog Potty Training Spray.
This product is something you would see on amazon with a high rating and amazon other
than its own website is probably its biggest distribution channel. This product is mostly
distributed through its own website and different dog-oriented product websites like
doglabs.com. You would see this product in pet shops
Bodhi Dog Potty training Spray advertises its product through the use of different online
lists and marketing through customer reviews. The promotion for this product is very
customer-oriented and is mainly found on external websites like amazon or these dog product
websites. This product can be found at pt stores like Petco and PetSmart which has its own
in-store promotion.
The Pricing Strategy for this product would be a low-cost provider. When compared to
our product you can see that they are both within a ten-dollar price range of each other. This
product is a Low-cost provider and is easily accessible to the average consumer.
CEVA (French Manufacturers)
The Company CEVA is a company that is one of the larger competitors to Kepley K9
Biosystems. Ceva has created a new product that helps with the behavior aspect of dogs. These
products are easy and are wall socket oriented. These help to calm the pet and make them not act
out in sporadic actions. Thus resulting in the dog/puppy being more calm and causing less
problems. “Mother dogs communicate with their puppies through natural messages released into
the air. These “comforting messages“ are scientifically called Dog Appeasing Pheromones.
These canine odorless messages are only perceived by dogs, neither by people nor by cats” via
CEVA official site. https://www.ceva.com/en/Products/Companion-animals/Behaviour
This company is a french company and does a lot of distribution all throughout the
European region. Ceva has 19 regional production sites. The majority of the channels that they
use are through the European regions and different distribution channels in European areas. Their
website doesn’t allow you to buy directly but they do have different ways to buy like looking up
their product Feliway (for cats) and Adaptil (for dogs). They have the typical distribution
channels for these products like Petco, PetSmart, and online like amazon and pet product
websites.
In terms of promotional strategies Adaptil uses they are very customer-oriented. There
are different promotions on various websites but through their external websites, you can see that
they heavily rely on companies like Amazon and the reviews for their products on those
websites.
This product is averagely priced. The price for this product is a little more expensive than
the Kepley k9 strategic scent but they are similar in how they priced. This is a low-cost provider.
Iams Europe B.V
Iams is currently a manufacturer of food and they have many different branches and parent
branches in europe. This Company has a promise in creating high quality pet food offering
important pet health for different breeds of cats and dogs.
This company does a good job of distribution by having multiple distribution channels all
over the world and especially in the United States. These distribution channels can be found
through multiple different channels via online and in person pet store operations.
Via promotional streams i think that iams has one of the best promotional strategies
amongst all of the companies on the list. Iams is a nationally recognized company and allows for
these companies to have a global brand image around the world.
Iams is a high quality high price model.
Product Market Level Assessment of the Chosen Market – Customers who are domestic to the
chosen market
3)
For my part I was tasked with finding eight potential customers for our company to sell
our product to. I mainly focused on wholesalers because this seems to be the best way to get our
product out to the most potential buyers in the Netherlands as possible. I followed the example
from the lecture and was left with minimal options, so I spent a lot of time doing further outside
research, finding more wholesalers in the Netherlands that are a better fit to sell our products to.
8 Wholesalers
-Midocean; Phone Number (31) 31 342-426880; Email [email protected]
-Care Tails; Contact: Ms. Jeannie Dieks, Phone Number +31-313-335108
-Voduif Delux Trading; Contact: Mrs. Ellen, Phone Number 0031-55-5061201
-Vofstripstal; Contact: Mr. Timmers, Phone Number 031-020-6924261
-Woof en miauw shop; Contact: Mr. R de Ruijter, Phone Number +31-38-4549744
-Sugarsdieren Benodigheden; Contact: Mr. Aljumaily Aljay, Phone Number 0031-36-5247826
-Glossy Doggy; Contact: Mr. Fritsch, Phone Number 0031-020-6417054
-Handels; Contact: Mr. Handels, Phone Number 0031-46-4375359
Keys to Projected Success
According to Trading Economics exports from the United States to the Netherlands has been on
incline since 2017 until 2020. Based on the graph I can infer that the increase in exports came
from when the pandemic had begun. As we enter into 2021 I can see a gradual increase in
exports to the Netherlands from the U.S. The trade barriers of the Netherlands seem to be
achievable and nothing out of the norm. According to Global Trade imports to the Netherlands
they require import licenses. Although there is not any data for the growth or decline for pet care
products in the Netherlands, there is data that shows that there has been an increase in the dog
population. Which can be inferred that there may be a potential market for dog care.
Profitability Analysis
Most Favorable
(5.5%)
Expected
(2.5%)
Least Favorable
(0.3%)
Export Sales
Revenues
$16851.45 $7659.75 $919.17
Financial Measure
Gross Profit
(38.9%)
$6555.21 $2979.64 $357.56
Operating Profit
(6.0%)
$1011.9 $459.59 $55.15
According to USITC DataWeb year 2020 report for HSS code 4201006000 (determined in
previous research), the US exported around $306,390 in walking aids like leashes, harnesses,
muzzles, and dog coats to the Netherlands. Our chosen product, Strategic Scent, is most closely
related to this code, however it is not a perfect fit due to being an innovative new product. The
market share percentages above were chosen based on this discrepancy lessening the market
share of the product.
United States International Trade Commission. (2020). Trade data retrieved April 1, 2021, from
http://dataweb.usitc.gov/.
Risk Management Association. (2020). Ratios for NAICS 453910. Retrieved from RMA
eStatement Studies.
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