Poor Leadership

Problem statement

POOR LEADERSHIP

Entered International markets before defining US market.

No marketing plan for the International markets.

EUROPEAN OPERATIONS RAN BY AN INEXPERIENCED MANAGER.

Mr. Masson was a friend of a Kenics' director, and Masson had no experience in this field, only in the food chemical field. Mr. Masson was given a 3 day tour, where he was exposed to the mixer and was told to open the European branch as he saw fit.

MINIMAL UNDERSTANDING OF THE EUROPEAN MARKET.

No research about the European Markets was done to explore what the demand was or how the many cultures and languages would effect how they should operate the branch in Europe. No defined target market.

NO MARKETING PLAN FOR EUROPE.

Mr. Masson did not use the known differences in buying behaviors among the European countries. No plan on how to market to the different industries in Europe.

POOR SALES ORGANIZATION.

Only advertising going on in Europe is a direct mailing program.

Sales agents had to invest their own time and money, and get their own publicity materials.

LACK OF TRAINING FOR EUROPEAN EMPLOYEES.

European branch had to communicate in 7 languages and deal with many different cultures.

No training on the products or different markets in Europe.

PRICING PROBLEMS IN EUROPE.

No plan to lower or get rid of some of the extra charges and fees.

No promotions or discounts to help lower the price.

POOR DECISION TO INTRODUCE THE SUPER NOZZLE IN EUROPE.

Many different sizes of nozzles needed in Europe.

Going ahead with introduction, but still no plan to fix fitting problems or no real strategy for the super nozzle as far as sales, marketing.

SITUATION ANALYSIS (SWOT)

STRENGTHS

S1 Innovative Products

S2 International Interest

S3 No major competitors

S4 Custom products

S5 Realizing potential growth

S6 Rifle approach in Japan

S7 Sales in US market

S8 Defining some strong markets in US

S9 Strong engineering personnel

S10 Research on the different sizes for nozzles in US

WEAKNESSES

W1 Managing ability

W2 Understanding of European markets

W3 No sales objectives set for international markets

W4 Low sales in Europe

W5 Poor sales organization

W6 Poor training

W7 Poor research on different sizes for nozzles in Europe

W8 Shot gun approach in Europe

W9 Taxes, fees, charges on European sales

W10 Marketing strategy in Europe

OPPORTUNITIES

O1 Huge potential growth

O2 Other industries to market to

O3 Profit potential in Europe

O4 Other International markets

O5 Manufacturing products in Europe

O6 New applications for the products

O7 New products

O8 High market potential in Germany

O9 High potential for the Thermogenizers in Europe

O10 More joint ventures

THREATS

T1 International trade issues

T2 Language barriers

T3 Cultural barriers

T4 Image of American products

T5 Government

T6 A better organized company entering international markets

T7 High prices in Europe

T8 Image of super nozzles being too expensive

T9 Fragmented media in Europe ( inability to use )

T10 Demands of European buyers

(SEE EXHIBIT 1 FOR EXPLANATION)

EXHIBIT 1

S1 New products to the industry that save companies money by mixing better. New products that have no equal.

S2 The International community came to Kenics wanting their products. Sales in some international markets are good.

S3 New product that no one else has. Only company with this technology.

S4 Ability to build different sizes. Ability to customize for different applications.

S5 Realizing growth potential domestically. Realizing growth potential internationally.

S6 Targeting certain applications. Acted more slowly and deliberately.

S7 Organized and better marketed. Over 1 million in orders.

S8 Management segmented market for static mixer products. Identified target industries.

S9