4P- Arzum Okka

PRODUCT:
Our product Arzum Okka coffee machine, it is a consumer good because people consume
every day.

- Price is around 90 euro in Turkey, and it will be 130 euro in Netherlands, price is
different because of that price strategy is adaptation.

- Promotion will be different in both countries so; it will be adaptation too.

- Where we sell the product will be the same so, place (online, physical store) will be
standardization.

- There will be standardization as the color, content and parts of the product we sell will
be the same in Netherland.

***Since we use both standardization and adaptation, we will present our product to the
Netherlands with the balance strategy.

By using the balance strategy, Arzum will get benefit from both standardization and
adaptation advantages.

One advantage of standardization product is global competitive. It gives company

encourage to improving technologies and design process, manufacture, sell and service
products with the lowest cost. Being open to development is also an advantage for this
situation.

Another advantage of standardization is easier communication, planning and control. Since

there is confidence to be able to communicate directly with the seller, an easy communication
and control of the process in addition to the operation is done quickly and reliably.

We will consider variation in consumer needs. The taste styles and habits of the customers,
which they adapt to their daily life and cultures, can change. The change they need, the taste
and testing should satisfy them.

It will be more efficient as we will use adaptation the promotions to the Dutch culture and
prices are adapt with their income.

Coffee drinking styles and frequencies that appeal to certain segments (for example, the
preference of the working segment, the preference of the student segment or housewives).
This situation can be given as an example as a socio-cultural factor.

The Three Levels of a Product:

Core Product: Arzum Okka’s machine parts, performance, and technology are the same. It is
standard for all countries.
Product Attributes: While the brand name, quality and packaging, design and size are the
same, price and staff behavior differ.

Support Services: In Netherland the warranty period is longer than Turkey, but the repair
service time takes more time.

Product Warranties
Since we are exporting, we have kept the warranty period long so, that we can make the
consumer happy as there will be delays in service and product transportation. And we will pay
back the money or give new machine if something happen in warrantee period.

Scale of elemental dominance:

In scale of elemental dominance our coffee machine located in the middle and more near to
product dominant entities than service-dominant entities. Arzum Okka is seems product
dominant but also must has to service, call center, after selling service.

Packaging: Nowadays, everyone has better understood the importance of sustainability and
we have added sustainability to our vision. Outer packaging should be sustainable and
biodegradable. Thus, it is very important both in terms of attracting the attention of the
company in the sector and the target audience.

Labeling: On the label of Arzum Okka, we put an article explaining that Turkey is the country
of origin and its inside equipment, parts. There is no special warning or anything that the
Netherlands wants to be written legally.

Aesthetics: Although its aesthetic appearance is standard, it provides an image opportunity

that can be used anywhere such as workplace, home, etc. The place of the classical image is
always everywhere, at the same time, a single aesthetic image reflects the confident and
determined stance and character of the product. Design and color is black which is look
expensive and cool in both country.

Brand-Product
- Since we made the branding decision to another country with the same name, Arzum is
a multiple market.
- Globalization is important and we have to follow it, to grow to new places and expand
into many regions.

Our product is global because we use same product, same design in everywhere.
Our brand is more local than global because we use same name, but different slogan,
promotion and different price in Netherland.

- When we consider hierarchy of needs Netherland fit into Maslow's.

Global Product Planning: Strategic Alternatives:

We use same product in Netherlands with different communication, so strategy 2(product
extension communication adaptation).

Product life cycle: in growth, our aim is maximizing market share in Netherland. In maturity
part, our aim maximizing profit with keep market share high. Final stage is decline, we will
try new market opportunities and eliminate product cost, reduce cost. We will stop care about
market share and profit. We just consider loyal customers.

PRICE:
We chose competitor’s pricing from competitive pricing among other pricing strategies for
Arzum Okka. Arzum Okka's most dominant competitor is Senseo coffee machine. It is a
coffee machine developed by Philips in partnership with Douwe Egberts. Douwe Egberts
produces these coffees that come from its own filter and develop various aromas, and the
preparation is left to Senseo. And because of the excellent quality of the coffee, it produces,
and it work very fast, in Netherland it is the first choose. Senseo coffee machine’s price
around the 150 euro. Its price is increasing gradually so, their strategy for pricing is
penetration pricing and we find that logical. Therefore, our price will be 130 euro.

Reasons why we prefer competitor’s pricing for Arzum Okka,

- We think that the price reflects the quality because of its strong technological
structure and its ability to produce different types of easy-drinking coffee. We will
start with lower than 150 euro, Thanks to that it is more affordable for the citizens
and meets the price performance relationship. Also, since price different is a little
lower than Senseo, consumers do not question its quality.

- The price is competitive to local market conditions because it is in a more

advantageous position than many brands with the same features in the market.

- Considering our competition with other competitors and people's demand,

competitive pricing is more prominent and logical.

- We can make some discounts at special times by reducing export cost in overtime.
Having double discounts on special days and holidays encourages people even
more. For example, in the Netherland when they celebrate Christmas, Valentine's
Day, and their King's Birthday (April 27). Applying a seasonal discount can also
be a good incentive. For example, in the summer months people socialize more so,
demand of the drinking coffee increase.

- The prices should not be different then market segment so, we choose around the
general pricing.

- Our market is not very elastic.

- We do not add our costs in Turkey (like advertising for Turkey) to the cost of the
Netherlands. They are two different side and have separate costs.

- It is possible to say that there is no strict application of this law for this product in
Netherland and since our price is not low enough to be call dumping, it not a
problem for us.

Conclusion
Firstly, we consider internal factors like, competitive strategy, firms position, cost of
production market entry mode (direct) and also, we look the external factors such as
government issues, (taxes, laws, penalties), business life cycle, and inflation. As we
mentioned in the first part of the report, we also took into account the product factors.
Moreover, we consider market factors like, consumer perception, opinion, consumer ability to
pay and competitors side too. As a result, we decided that competitor's pricing is more
suitable for Arzum Okka.