Import Plan:

How can Rossmann GmbH import

Gatsbys wax creams for men on the
German market?
Looked at different products to be Imported
Chose the one with highest:
Market size (value in terms of sales and quantities)
Potential growth
Looked for the best country:
Country selection inicated - Germany
Looked for the best supplier
Distributor selection indicated Rossmann GmbH

Introduction
Pre-filter
Gross Domestic
Product (GDP)
per capita
Inflation
Unemployment
rate
Population
First Filter
Market value
Market volume
Segment size
Projected growth
market value
Projected growth
market volume
Second Filter
Urbanization
Infrastructure
Trading across
borders
Global
competitive index
rate
Country selection
Macro analysis
PESTLE
Meso analysis
Hair-care
Market analysis
Industry
analysis
Market
Structure
Micro analysis
Customer
Analysis
Competitor
analysis
External analysis
Political
Economic
Social
Technological
Legal
Environmental
Macro-economic analysis
Meso-environmental analysis
Market analysis
Market size
Market growth

Market structure
Monopolistic competition

Porters five competitive
forces
Buyer power
Supplier power
Threat of new entry
Substitude products
Rivalry
Micro-environmental analysis
Customer analysis
Segmentation
Customer Motivations
Unmet needs
Competitor analysis
Product Competitors
LOreal
Henkel
P&G
Distribution Competitors
Organizational
Analysis
Company
Overview
McKinsey 7S
Model (staff,
strategy,
structure, shared
values, skills,
style, systems)
Financial Analysis
Cost analysis
Budgeting
Pro-forma
Income
Statement
Ratio conclusions
Marketing Mix
analysis
Product
Place
Price
Promotion
(Promotional
Packages)
Internal analysis
Newbie Shopper
Focus Strategy
Mass-Marketing and Differentiation
Targeting
Hybrid (combination of cost leadership and
differentiation)
Competitive
Advantage
MORE FOR LESS
Positioning
Quality, Value, self-expressive, product attribute,
appealing design
Value Proposition
Brand Building and Distribution
Functional strategies
Business Plan
Targeting:
Targeting:

The Newbie Shopper
20s-30s
Service industry
High disposable income
Well educated

Focus vs multiple segment
Focus strategy meet unmet
demand





Targeting strategy:

Combination between mass-
marketing and differentiation
strategy
To little research on motivations to buy
Impractical to focus - differentiation

Competitive Advantage Strategy
Differentiation:
Product Focus solely on men
Channel Rossmann is not a typical
supermarket, but a drugstore
Image Enhance the image

Cost Leadership:
Supply chain management (ECR)
Operations and Distribution economies
Shelf management


Hybrid
Strategy
(high quality,
low price)
Differentiation
Strategy
(high quality,
high price)
Price-based
Strategy (low
quality, low
price)
Zone X
Positioning strategy
Based on the competitive advantage strategy:
More Quality
Less Price

Value proposition
Product Benefit wax for men
Self-expressive I am...
Appealing design wear in the
pocket
Quality reflect Rossmanns
image
Value price is a driving force
(high elasticity of demand)
Value
proposition
Product
benefit
Appealing
design
Value Quality
Self-
expressive
benefits
Functional strategies
Brand building strategy:
Achieved through the
Marketing mix:
Rossmann promotes
Gatsby
Gatsby gains awareness
Gatsby supports the
image of Rossmann

Distribution strategy:
Direct Import
Osaka-Hamburg (BAS/FOB)
1,875,000 Products
5 40ft FCL containers
375,000 per container
Trucks to take 5 containers
to the 5 cities



Market Entry Strategy
Direct import:
Disintermediation
Partnership based on exclusive
rights
Localized strategy
Also like Japanese products

Advantages:
Control of Supply-chain
Create a monopoly in
male hair-care
Increased brand equity
Sharing risk
Marketing Mix
Product
Spiky Edge
Grunge Mat
Wet Texture
Wild Shake
Multi-form
Loose Shuffle
Price
Market
Penetration
Pricing
Place
Berlin
Frankfurt
Dsseldorf
Hamburg
Munich
Promotion
Premium
Package
Standard
Pakage
Basic
Package
Considerations:
CE Mark
Test Group
Colours
Physical differentiation
Repackaging
Brand name
Is it a word in German?

Product
Price and Place
Market penetration pricing
To obtain a dominant position
Capture higher percentage of the sub-
market

To avoid being perceived as lower
quality:
Place in the right category
Communicate substance behind the low
cost
5 Distribution points:
All part of top10
German wealthies cities
Berlin
Frankfurt
Dsseldorf
Hamburg
Munich
Promotion (1 out of 3)
Different combinations of:
1. Online promotion
Facebook, Youtube, Google awards (endorse a football player)

2. Newsletters and brouchures
Put them in shop 1 month before start of sales

3. Samples
Can be distributed at viral locations
The Movie
Allow customers to feel the product and get excited about it
Promotion (2 out of 3)
4. Posters
Posters of people from different
ethnical varieties
Gatsby, Mens care for every type
of hair

5. The Great Gatsby
On DVDs - Advertisement before
the movie
Samples

6. Magazines - Mens health
Magazine
Show different styles
Explain how to use
Focus on different ethnic
groups
7. Mobile App
Young customers (smartphones)
Increase interaction



Promotion (3 out of 3)
3 Packages:

Premium 2,500,000 EUR
Online Promotion, Newsletters and Brochures, Samples, Posters, The
Movie, Magazine and a Mobile APP

Standard 1,100,000 EUR
Online Promotion, Newsletters and Brochures, Samples and Magazines

Basic 500,000 EUR
Only Newsletters and Brochures

Risk and Financial analysis
Risk Analysis
DB1C
Cost analysis
Direct
Indirect
Budgeting
3 case scenarios
Sales Budget
Cash Budget
Pro-forma Income
statement
3 case scenarios
Income
statements
Risk analysis
Ranks DB1C

DB1-DB7 (indicate degree
of risk)
Letter A-D (tendancy of
risk)


According to According
to Dun & Bradstreet on
doing business

Political
Commercial
External
Macroeconomic
Natural Disaster

Table7.5.Costs
Cost of goods sold 7,406,250 (3.95 per unit)
Trade mark costs 1470
Marketing costs 2,500,000 (premium package)
Logistics 204,067.50
Import duty 740,100.70
Total Costs 10,851,888.20
Cost Analysis
68%
23%
2%
7%
Cost Structure in %
CoGs
Trade Mark
Marketing
Logistics
Import Duty
Q1
Q2
Q3
Q4
0
100,000
200,000
300,000
400,000
500,000
Worst
Normal
Best
Worst Normal Best
Q1 250,000 359,375 468,750
Q2 250,000 359,375 468,750
Q3 250,000 359,375 468,750
Q4 250,000 359,375 468,750
Sales Per Quarter
- 2,000,000.00
0.00
2,000,000.00
4,000,000.00
6,000,000.00
8,000,000.00
10,000,000.00
12,000,000.00
14,000,000.00
16,000,000.00
18,000,000.00
20,000,000.00
Worst(5%) Normal(60%) Best (35%)
- 1,013,746.96
2,853,720.59
6,397,470.56
10,851,888.20 10,851,888.20 10,851,888.20
10,000,000.00
14,375,000.00
18,750,000.00
Net Income Expenses Sales
Case Scenarios: Net Income Change
Implementation
2014 - Import Plan
Activity 1 2 3 4 5 6 7 8 9 10 11 12
Register Gatsby in Germany
Shippment of the five containers reachers boarder
Pay Import Duty and other logistics charges
Payments for the Gatsby products
Merchandise reaches Hamburg
Distribute Merchandise to other facilities
Put Merchandise on shelfs
Marketing Campaign
Qualitative Research
Quarterly Meeting
Tax Payment
Top Management Meeting
Months