Companies enter international markets because they believe that those markets offer attractive opportunities for a specific product or service. However, before companies make the decision to commit significant resources--including money and time--to entering a market, they must take several different considerations into account. Some products, for example, are not appropriate to certain countries for cultural reasons while other products may fail due to economic conditions. Selling pork in Islamic countries would likely fail, for example, because of the Islamic prohibition against pork products; this is an example of a cultural issue preventing success. Similarly, selling luxury cars such as Mercedes-Benz in a developing country would also have a low possibility for success due to economic conditions. Once a company has determined that a particular nation offers an attractive market opportunity from a cultural and economic standpoint, it must still determine how to enter the country--whether to enter using distributors, develop its own distribution network, use a joint venture, or develop some other arrangement that will result in the best possibility for success. This research considers three products being considered for export to Italy, the selection criteria associated with these products, and the best way for the selected product to be introduced.
There are three products under consideration for export to Italy: LactAbond, SlipOns and PainAway. These products serve very different demographic segments of the Italian population. LactAbond is a supplement that helps mothers produce healthier milk for their infants. While the target demographic for the product is women of childbearing age who are breast-feeding their children, this product also depends on the birth rate to ensure long-term success. If the birth rate is falling, this product does not have good long-term prospects.
SlipOns are disposable diapers that do...