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STUDENT NUMBERS: 688776, 746769, 688292, 688751, 675337, 687712
(Please include all
group members)

WORD COUNT: 7989

1
Cherry Tree Country Clothing
MAY 3RD

2016

...the ultimate in country clothing and outdoor wear

Project Group 21

Developing an International Sales Strategy


for a U.S.A Foreign expansion
Faith Abolarinwa
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document.]

Faith Abolarinwa, Odufolakemi Oduwole, Nanna Mofe, Iyellakeme Shadrack,


Ushe Sasha, Xiong Haitian 2
Contents
1. Executive Summary ......................................................................................................................... 4
2. Introduction ....................................................................................................................................... 6
2.1. Aim ................................................................................................................................................................ 7
2.2. Objectives ................................................................................................................................................... 7
3. Literature Review ............................................................................................................................ 9
3.1. The U.S Outdoor Market ........................................................................................................................ 9
3.2. Customs and Duties Requirements ................................................................................................ 11
3.2.1. Custom Duty Management ......................................................................................................................... 12
3.3. The U.S. Consumer ................................................................................................................................ 12
3.4. E-commerce ............................................................................................................................................ 13
3.5. Cultural Differences ............................................................................................................................. 15
3.6. The Business Model ............................................................................................................................. 18
3.7. International Marketing Strategy ................................................................................................... 20
4. Research ........................................................................................................................................... 22
4.1. Results from United Kingdom Market Survey ............................................................................ 23
4.2. Results from United States of America Market Survey ..................................................... 27
4.3. Results from Interview ....................................................................................................................... 33
5. Delivery/Implementation .......................................................................................................... 35
6. Evaluation ........................................................................................................................................ 38
7. Conclusion ....................................................................................................................................... 40
8. Recommendations ........................................................................................................................ 42
9. References ....................................................................................................................................... 44
10. Appendices.................................................................................................................................... 53
10.1. Appendix A ........................................................................................................................................... 53
10.2. Appendix B ........................................................................................................................................... 54
10.3. Appendix C ............................................................................................................................................ 62
10.4. Appendix D ........................................................................................................................................... 63
10.5. Appendix E ............................................................................................................................................ 64
10.6. Appendix F ............................................................................................................................................ 65
10.7. Appendix G ........................................................................................................................................... 68
10.8. Appendix H ........................................................................................................................................... 69
10.9. Appendix I ............................................................................................................................................. 73
10.10. Appendix J .......................................................................................................................................... 77
10.11. Appendix K ......................................................................................................................................... 81
10.12. Appendix L ......................................................................................................................................... 83
10.13. Appendix M ........................................................................................................................................ 84
10.14. Appendix N ......................................................................................................................................... 85
10.15. Appendix O ......................................................................................................................................... 86

3
1. Executive Summary

The project task assigned to us was to develop an international sales strategy for the
company’s expansion in the United States of America (U.S.). To achieve this we
developed several objectives which was to:

1. Research into the cultural differences existing in the U.S.


2. Research the level of participation in outdoor activities in the U.S, and the United
Kingdom (U.K).
3. Research and determine ways the business can increase online sales
4. Explore suitable strategies that are necessary for developing and implementing
an international sales strategy for the business
5. To collate all results in best alignment with the project brief.

We carried out a primary research through the means of questionnaires and interviews,
one targeted at the UK and the other at the US. They were aimed at addressing the 2nd
objective, which was crucial in understanding the local market in comparison to the
foreign market. The results showed that there is an even greater outdoor participation
in the U.S, making it a very attractive market. The result further revealed that those
from West North Central in the U.S have the greatest participation in outdoor activities,
making this a prospective target market. It also showed the similarity in consumer
outdoor preferences from both countries, most consumers enjoy walking and running.
Finally, the results highlight the consumer buying behaviour in the U.S.

The comparative findings in cultural differences of both countries revealed very little
differences. Notwithstanding, the U.S is a culturally diverse market, given its many
minorities etc., however a dilution in cultural differences has resulted into a high level of
cultural integration.

Moreover, our research into customs and excise duties in the U.S represents a notable
influence on product pricing. However by best understanding of these taxes, which can
vary from 0% to 38%, and its average not exceeding 5.73%, the business is able to
manage these costs in order to improve competitive pricing.

4
The importance of e-commerce cannot be understated, given the fact that 87% of the
US population are Internet users, and of these, 70% are regular online shoppers. This
therefore gives the business access and visibility to their target market. To complement
this e-commerce platform, the business has already opened account on Twitter,
Instagram, Facebook and Google plus all of which serve to lift visibility and promote the
brand. Regrettably, due to time and budget constraint (See Appendix A) we were
unable to carry out social media campaigns that we intended to. However, Industry
experience would suggest that through efficient social media integration and other
public relations exercises, the business will be able to increase its presence on social
media, which will in turn, notably increase the number of visits on the company’s
website.

Furthermore, the project group experienced the following challenges: the acquiring of
video equipment for promotional purposes, the lack of personal interaction with the
company representative and lastly the inability to visit the company’s store due to
distance. In overcoming these challenges, we adopted a flexible communication style
using electronic mails and video conference calls.

In formulating necessary recommendations, we posed the following:

 An aggressive increase in its social media presence, however if the business is


unable to manage the social media, they are better off outsourcing it to a public
relations agency to help keep the momentum and top of mind awareness.
 To grow company awareness in the U.K simultaneously with its expansion in the
U.S using both online (social media, the web, pop ups) and offline (local
newspapers and specialized magazines and publications) methods of
advertising. This recommendation is borne out of research findings showing that
the company is not well known in Wales and the U.K.
 It could be useful to partner with local companies in the U.S for better market
understanding, risk management and ultimately favourable customs and duties
prices.
 Given the cultural nature of the U.S communication style, a market that demands
specific product information, the company needs to pay the right attention to
5
marketing strategies. We have addressed this in part by re-designing the
company’s website and logo.

2. Introduction
Cherry Tree Country Clothing is an established family business based in Ruthin, North
Wales in the United Kingdom, which retails different brands of outdoor clothing and
equipment. Brands they retail include: Grisport, Bonart, Highlander, Hoggs of Fife,
Forest Clothing amongst many others. The image below shows the Hoggs of Fife
Huntly Prestige Knitted Jacket, which is one of the business’ most sold items.

Image 1: Hoggs of Fife Huntly Prestige Knitted Jacket


Source: www.cherrytreecountryclothing.com

Its traditional area of business has been the U.K whilst recently, it has begun operation
in the states of New York and Alaska in the U.S. via e-commerce.

6
This business will sustain its current brand ranges into the new states and continue the
long-standing relationship with their suppliers.
Our contact was confirmed with Bethan Bithell, the CEO and Managing Director of the
company. Whilst personal contact was not possible due to distance and time, the
quality of interaction was highly professional. Also, clearly communicated needs and
aspirations of the company gave direction to our efforts and motivated the team to add
value (See Appendix B for minutes of each meeting).

The project team consisted of six members, and each member took up a role in the
course of the project (see Appendix C).

Cherry Tree Country Clothing was our first choice because we believed that each
member in the project team had the skills to execute the project successfully. We also
had a strong belief that we could develop a strategy that would serve the business’
determination cost-effectively. The different members of the team possess skills such
as: management, financial modeling/planning, marketing, graphic design, website
design and branding. These different skills were highly beneficial in the execution of
this project. Two members of the project team communicated often with the business
and then provided the rest of the team with the necessary information. As a result of
effective team communication and cooperation, the project was successfully executed.

2.1. Aim

The aim of this project was to create an international sales strategy for the company so
as to optimise their sales performance in the U.S. As a result, we were able to develop
objectives to help in the completion of the project.

2.2. Objectives

1. Research into the cultural differences in the U.S., as well as customs and duties
requirements in the country By February 15th 2016.

7
2. Research the level of participation in outdoor activities in the U.S, and the United
Kingdom (U.K) by 7th, March2016.
3. Research and determine ways the business can increase online sales by 15th
March 2016
4. Explore suitable strategies that are necessary for developing and implementing
an international sales strategy for the business by 22nd March 2016.

Tasks, timescales and responsibilities have been included in the project log (see
Appendix D). This log also includes the due date and status of each task.

8
3. Literature Review

In today’s highly competitive business environment, companies are constantly


searching for strategies through which they can remain sustainable. Foreign expansion
is one strategy that has increasingly gained attention over the years, largely due to the
globalization of customers and competitors specifically in capital markets (Gupta &
Govindarajan, 2000).

Nonetheless it is critical that firms take into consideration even the smallest detail when
looking to grow in a global market and seek to understand the global game in order to
contend with foreign competitors (Douglas et al., 1989; Hamel & prahalad, 1985).
Consequently, the literature will focus on the U.S outdoor industry and progress to
understanding how a business can succeed using e-commerce whilst having a flexible
business model. Other factors such as cultural differences and customs and duties
requirements of the U.S will be reviewed. Finally, the literature will discuss international
sales strategies that can best serve the current nature of the business.

3.1. The U.S Outdoor Market

The U.S. outdoor market is a booming one as over $127 billion is generated from
outdoor recreation product sales each year (The outdoor recreation economy, 2012). It
is no surprise that outdoor recreation was referred to as part of the American fabric
since 48% of the U.S population engage in outdoor activities, which is nearly half the
population. (Outdoor recreation participation, 2015).

The U.S, which has a gross domestic product of over $17.9 trillion, is one of the
strongest economies in the world (The world bank, 2016). Favourably, Consumer
spending and disposable income have been growing in the last few years, whilst
consumer inflation has been experiencing a decline. The wellbeing of an economy can
have severe implications on foreign business (Craig & Thomas, 2009), thus it is
important to review these economic factors as often as possible. Over the years, the

9
Federal Communication Commission (FCC) in the U.S has made Internet regulation for
businesses even more favourable for investors encouraging more investments (Fox,
2015).

The market potential has proven to attract foreign investors, however penetrating into
this market can be quite challenging as some big competitors already dominate the
market (Miller & Washington, 2016). Manufactures, such as North Face, Patagonia and
Columbia who control more than half of the market are giant players (see fig 1) likely
causing threats to new foreign businesses.

Figure 1: Market Share of the Outdoor Apparel Industry

Columbia
17%
North Face
L.L Bean 37%
19%

Nike
15% Patagonia
Timberland
9% 3%

Source: (Rushing et al., 2016. Columbia sport branding project)

Other sport brands such as Nike and Adidas have taken advantage of the outdoor
market growth and are successful, as these are already established sport brands
(Cheung, 2011).

10
3.2. Customs and Duties Requirements

Customs and duties are regarded as value added taxes imposed on goods when it is
moving across boarders (U.S department of homeland security, 2016). A clear
understanding of customs and duties is crucial in order to determine the price impact on
consumers.

When sending goods to the US, import duties are due at the border. The main valuation
used to determine the levy imposed is through ‘free on board; (FOB). This valuation
depends only on the value of the good. However, in some cases, it is calculated on
both value and quantity of the product which is usually in ad valorem (percentage of
value) or in dollar or cent. Whichever valuation is used, the duty rate usually varies
between 0%-38%, but the average rate is 5.73% (Pitney Bowes, 2016).
In addition to the import duties, Merchandise Processing Fee (MPF) is charged, it is a
fee required by the customs and duties protection to assist in process merchandise and
in monitoring customs and trade compliance (FedEx, 2016). Formal entry and informal
entry of goods are subject to this fee.
The charges are as follows:
 Formal entry: charged on commercial goods valued at $2500 or more, the ad
valorem fee is 0.3464%. When the MPF is charged in this case, the minimum
amount to be charged is $25 and the maximum is $485 (CBP, 2016).
 Informal entries: this includes goods that are transported to the US via ship, air
or international mail. The MPF for this entry is a set fee, which varies from $2.00
to $9.00 per shipment (CBP, 2016).

11
3.2.1. Custom Duty Management

A custom duty is a cost, either to the business or customer. Therefore it is the


responsibility of the business to manage it. Neville (2010), proposed ways
through which a business can manage custom duties:

 Avoid duties: Unnecessary custom duties can be avoided where the


imported goods value does not exceed $800. A business can also take
advantage of free trade agreement (FTA). The US has signed FTAs with
certain countries; unfortunately this does not include the UK (Ustr.gov,
2016).
 Reduce Duties: Even though duties are imposed, there are ways to
reduce them. Importers tend to change the tariff classification to lower the
tax rate (Neville, 2010). Sometimes, semi-finished goods are sent into the
US to reduce the tax rate. A semi-finished camping tent cannot be valued
as a camping tent because it is not a finished product.
 Duty Referral and Refunds: It is possible to partner with a manufacturer
in the US under the benefit of Free Trade Zone (FTZ). This way, one can
have cash flow saving accruing from duty deferral which may eventually
lead to a refund of 99% of previously paid duties (Neville, 2010

3.3. The U.S. Consumer

Majority of the U.S consumers have become health-conscious. They have become
largely conscious of their appearance and are taking conscious effort such as dieting,
and exercising to watch their weight (Cho et al., 2014). Exercising has also become the
biggest motivator for outdoor participation (Outdoor recreation participation, 2015).

12
Figure 2: Youth and Adult Outdoor Participation

hiking
13% Running, Jogging
and Trail
Running
27%

fishing
19%

bicycling
22%
Camping
19%

Source: Outdoor foundation, 2015

The youths (ages 8-24) and adults are participants of outdoor activities; in fact, the
youths have a stronger participation level (see fig 1) as this generation promotes need
for health and fitness. Running, jogging and trail jumping seem to have a greater
number of participants amongst the youth. Females have shown increasingly more
interest in their participation level, majority of which are Caucasians.

The U.S consumers are westernised and rely on the Internet for almost everything.
Mintel’s online shopping report (2015) shows that more than half of the U.S adults shop
online. From this population, 62% are likely to buy clothing or accessories, in fact it was
recorded that online retailers of clothing and accessories made the most sales in 2014.
However, it was discovered that online shoppers usually try to find the best deals;
therefore they choose retailers on the basis of price due to easy comparability on the
internet (Mintel, 2015).

3.4. E-commerce

The growth of the Internet and Web technology has made it possible for businesses to
commercialise their products online (Mammar, 2003). An in-depth understanding of e-

13
commerce in the U.S and online shoppers’ behaviour is important in developing a
suitable sales strategy for the US.

From the U.S. population, 87% are internet users, similar to that of the U.K (The World
Bank, 2016). According to Pew Research Centre (2012), 92% of the youth were
reported to go online daily. Of these 92%, more than a quarter shop online and 70% of
Americans (both youths and adults) are regular online shoppers (Fox, 2012). Half of
these shoppers take advantage of shipping cost; they are willing to increase their order
size to meet up with the free shipping threshold (Mintel, 2015).

Mammar (2003) defines e-commerce as a concept for any type of commercial


transaction, requiring the transfer of information and the exchange of tangible or
intangible goods on the Internet. E-commerce is not just limited to the transaction, it
also covers sharing data electronically and providing customer services (Bharadwaj &
Soni, 2007). Bharadwaj & Soni went on to further explain that the U.S government
provide tax breaks in order to encourage the active participation of small businesses in
e-commerce.

According to Dillon & Reif (2004) marketers have discovered that there are some
factors affecting consumers’ behaviour when they shop online. These factors are
referred to as “clusters of purchase perceptions” and they include: product
understanding, shopping experience, customer service, and consumer risk (Jarvenppa
& Todd, 1996).
 Product understanding or product knowledge includes information concerning a
product application, function and feature. An online store does not present the
opportunity for consumers to physically hold a product and read the information
it contains; therefore e-tailers are making reasonable efforts to provide far more
variety in information sources than even traditional sources (Lee & Chan-
Olmsted, 2011). Consumers are keen to explore a product’s information so as to
weigh the product against its price and quality.

14
 The shopping experience involves factors such as convenience, product
availability, shopping ease, effort and the comfort of the shopping process (Lee
& Chan-Olmsted, 2011).

 Customer service, which is another factor influencing consumer purchase, is


highly crucial for attracting and retaining customers. As in a bricks-and-mortar
store, customer service is evident in the shopping experience (Lightner, 2004).
Businesses must provide responsiveness to complaints, reliability in delivery,
and assurance in quality and return policy (Lee & Chan-Olmsted, 2011). The
company’s website acts as the primary contact in e-commerce, therefore
knowing your target market is crucial in order to respond to their service
requirement and consequently enhance user satisfaction (Lightner, 2004).

 Finally, consumers’ perceived risk is likely to affect their online purchase


decision particularly when shopping from a foreign website. Sometimes
consumers feel unsure that a product might not function as expected, one way
they reduce this risk is by seeking internal and external information. Internal
search depends on consumer’s memory including past experiences, observation
and brand familiarity while external search depends on non-memory sources
such as product information and product rating. Indeed, it is essential that
businesses make attempts to influence the internal search and enhance the
external search.

3.5. Cultural Differences

Understanding issues on cultural differences are fundamental factors necessary for the
success of a business competing in a global market. Consumers in different countries
react differently to marketing input, have different style of communicating and make
decisions quite differently. Therefore, as businesses internationalise, they become
culturally dispersed and consequently lose their shared norms and beliefs (Meyer,
2015). Arguably, culture is dynamic; today’s global village has revealed societies and

15
values as interlinked. The dynamic nature of culture is said to exist because societies
are becoming more interconnected and the migration rate has been on the rise over the
years.

In 2004, the U.S had a net migration of 1.22 million, this reflects a 56% increase of
what it used to be in 1995. This migration must have caused a dilution of cultural values
and increase in cultural diversity (Malota, 2012); hence foreign business should take
into consideration this cultural shift (Jenner et al., 2008). The U.S is becoming more
heterogeneous, with increasingly minority population. Hence, companies targeting the
U.S market need to develop a better understanding of the diverse subcultural values
and lifestyles (Swaidan, 2012). Swaidan further stated that culture affects a company’s
marketing mix (Price, product, promotion and distribution) as culture determines what
consumers eat, what they wear, how they consume and what they consume.

Geert Hoftesde’s (2010) model has been widely accepted in assessing culture.
Hoftsede defines culture as the “collective programming of the mind which
distinguishes the members of one group or category of people from another (Hoftsede,
2010). Hoftsede developed a four-dimensional framework used to measure important
aspects of culture: power distance, individualism, masculinity and uncertainty
avoidance. These dimensions can be useful in determining consumer behaviour:

I. Power distance is the extent to which a culture accepts that power is distributed
unequally in an organisation or institution (Gillespie & Hennessy 2010).
II. Uncertainty avoidance is a culture’s lack of tolerance for uncertainty or
unambiguity.
III. Individualism/collectivism is the extent to which a culture believes that people
should stay emotionally independent from groups and other collectives.
IV. Masculinity/Femininity is the extent to which masculine values prevail over
feminine values (Gladwin, 1981).

16
It is important for a business to understand the values, ideas and moral standards
placed across the culture when entering into a new market.

Figure 3: Hofstede’s Cultural Dimensions for U.S. versus U.K.


100
90
80
70
60
Score

50
40 United Kingdom
30 United States
20
10
0
Power distance Individualism Masculinity Uncertainty
Avoidance
Cultural Dimensions

Fig 3 shows a comparative finding for both the U.K. and U.S. Both countries score high
and low in the same dimensions, thus showing a similarity in cultural values. In
addition, both countries have high individualistic cultures, which mean that people tend
to be “I” conscious; they look out for themselves (Mooij & Hofstede, 2011). People from
this culture are more embracing of outsiders, hence they are universalistic and assume
their cultural values are universal.
The UK and U.S. also score high in masculinity, which means status, success and
achievement are highly regarded. Therefore high status products are important in
showing off one’s success (Mooij & Hofstede, 2011). Finally, consumers in high
uncertainty avoidance cultures are likely to require more adaptation time in embracing a
new product development, new innovation or in purchasing a new technology.
Fortunately the U.S scores low in this cultural dimension. In a low uncertainty
avoidance culture like the U.S, people have a more vigorous attitude towards life and
tend to participate in active sports (Mooij & Hofstede, 2011). Standardizing ones’
product offering and marketing strategies can be possible, specifically when cultural
similarities exist between local and foreign market (Katsikeas et al., 2006).
17
However, according to Schaffer & Riordan (2003) it is not wise to totally rely on the
rankings from Hoftsede from the 1980’s, it is said to have been ageing and could have
possibly been out-dated. It was predicted that the uncertainty avoidance would likely
change within 20 to 40 years, hence research relating to the national ranking of
uncertainty avoidance may be questionable (Jenner et al., 2008).

In 1976, Edward T. Hall proposed the theory of high context and low context cultures,
which is useful for cross-cultural communication and marketing studies. In low context
cultures such as the US and UK, people are highly individualised and indifferent,
thereby having little involvement with others (Kim & Park, 1998). These cultures tend to
be clear and provide detailed information in their communication, it is no surprise that
Muller (1987) research discovered that the US consumers seek clear, detailed and
precise product information from ads they are exposed to. High context cultures are
quite the opposite, they are deeply involved with each other, hence they seek intimacy
and emotions in their communication style.

3.6. The Business Model

The rise of the Internet in the business world brought a great attention to the business
model (Novak, 2013). An understanding of the business model is necessary for
implementing an international sales strategy. A business model according to
Osterwalder (2005) is a term used to define a firm’s logic in creating and
commercialising value. A comprehensive business model is able to create a full
understanding of a business and makes it easy to implement its strategies (Goethals,
2011). When entering into a new market, re-adjustment of the business model is key.
The literature will use a regular company’s business model element as presented by
Osterwalder’s (2004) business model and an e-commerce model as presented in Afuah
& Tucci’s (2003) business Model. In addition, Byhlin and Holm (2012) integration and
application of both models will be adopted.

18
Figure 4: Oesterwalder, Affuah & Tucci’s Business Models:

Strategic Pillar Business models


Question
Osterwalder’s Afuah & Tucci’s Business
Business Model Model
What? Product Value Propositions  Profit site
 Customer value
Who? Customer Interface Target Customer  Scope
Distribution Channel
Relationship
How? Infrastructure Value configuration  Connected activities
Management Capability  Capabilities
Partnership
Revenue Model  Price/Revenue
Financial Aspects Cost Structure Source
 Cost Structure

In building the business model, it is important to consider the three strategic questions:
“What, who and how” the question addresses what product will be used to serve the
new market. Ostewalder’s (2004) model explains that value proposition is important in
distinguishing a business’ product from competitors’. Afuah & Tucci’s also supports this
statement that e-tailers need to have profit sites that distinctively positions them even
amongst competitors as this will impact customer value, the customer segment they
attract and prices they charge.

The ‘‘who’’ question is directed at who the business will target (target customer)? How
they will be reached? And how relationship is built amongst them? The distribution
channel is the connection between the target customer and value proposition (Byhlin
and Holm, 2012). Value is created for an online shopper when the product is delivered

19
at the right time, place and at a reasonable price. Likewise, building sustainable
relationships with customers is key in achieving loyalty and loyalty is fundamental to the
profitability and also survival of e-tailers (Christodoulides & Michaelidou, 2011).

The strategic question “how’’, is divided into two parts: the activities needed to create
value and the implementation of these activities. It addresses the infrastructure
management, which involves key operations in the business. As proposed by
Ostewalder’s model as well as Afuah and Tucci’s model, the value configuration and
connected activities are those activities that must be performed to underpin value, and
this is achieved through the value chain. Value should be added as it moves up the
chain of logistics, marketing, sales, operations and services. Nevertheless, focusing on
the business’ core competence is key; those areas where they have great knowledge
and technical capacities can give them a competitive advantage.

Having analysed all the strategic questions, the financial aspect, which is the last pillar,
addresses revenue, cost and price. However, a profitable price can only be charged
when customers derive value from the company’s product. Cost can only be minimised
when infrastructure is effectively managed and consequently revenue can be positively
impacted.
E-commerce business models should be focused on using the internet to create value
to customers, knowing target customers, understanding buyers’ habits, building long-
lasting relationships with them and having an effective distribution channel.

3.7. International Marketing Strategy

Expanding into new markets does not guarantee long-term business profitability; in fact
it is a risky venture. Igor Ansoff product-market expansion grid provides a useful growth
strategy that businesses can consider. It offers market penetration, market
development, product development and diversification.

20
The business already sends out parcels to the US, therefore a market penetration
strategy is proposed. Market penetration is a growth strategy that seeks to increase
market share with its existing product and existing market (Richardson & Evans, 2007).
Penetration can be achieved by attracting first time users of a product, encouraging
existing customers to increase purchase and winning customers from competitors.

When trying to increase market share, competitive pricing is an important factor,


likewise effective communication. Competitive pricing can be used to win customers
from competitors. Consumers are usually moved by even the slightest price difference.
Effective communication can also be useful in reminding ex-users or non-users why a
company’s product is a “must have.” Finally, incentives and sales promotion can be
targeted at existing users in order to get them to purchase frequently and in larger
volumes (Richardson & Evans, 2007; Proctor, 2007).

It is important to consider that these marketing activities can affect short-term


profitability and competitors are likely to respond to them. However, building loyal
customers might be an effective strategy, this could include the use of loyalty schemes
or reward schemes to retain customers (Richardson & Evans, 2007: Proctor, 2007).

21
4. Research
The group collected data by means of surveys, using questionnaires and semi
structured interviews. The questionnaire was initially focused on the U.S market,
however during the course of the project, we decided to introduce another survey
targeted at the U.K market as well. The rationale behind this was to compare both
markets so as to identify similarities and differences between the U.K. market and the
U.S particularly in areas such as culture, outdoor participation level and consumer
buying behaviour. Our findings will be able to impact the business by enhancing their
understanding of the market nature in the U.S., and enabling the management to make
an informed decision.

Before carrying out any of the surveys, a pilot study was conducted so as to avoid
challenges when carrying out the actual survey (Blessing et al., 2009). We
administered the actual survey to five people and closely observed their behaviour in
answering them, as well as the time it took. Since no challenges were encountered, the
actual survey remained the same. Both the pilot study and the questionnaires were
administered online, using Qualtrics; a research software as specified by Swansea
University to us. Respondents were recruited based on a random selection. Majority of
respondents lived in Swansea and surrounding cities within Wales and there were few
respondents who lived in bigger cities such as: London and Lancaster

The interview on the other hand was a qualitative research conducted to gain an even
deeper understanding of what exactly customers take into consideration when
purchasing outdoor clothing and equipment. This involved those residing in the United
Kingdom as well as others who were residents of the U.S. but are currently in the
United Kingdom.

22
4.1. Results from United Kingdom Market Survey

Figure 5: Respondents by Gender

Male
38%

Female
62%

This survey gained 112 respondents (see Appendix E), in which 62% of the
respondents were female and 38% were male (Fig.5).

Figure 6: Respondents by Age


80%
70%
60%
Percentages

50%
40%
30%
20%
10%
0%
18-24 25-34 35-44 45-54 55-64 65-74 75+
Age

Majority of the respondents were between the ages of 18-24 (Fig.6) (See Appendix F
for Survey questions). This was due to the fact that we had the easiest access to
students. The business should be aware that that we conducted this survey in a large

23
student community, so results may slightly differ when the same procedures are carried
out on much older age groups.

Figure 7: Respondents by Educational Level


Graduate or Did not
professional complete high
degree school
17% 1%
High school
diploma
23%

Bachelor's Some college,


degree but no degree
40% 14%
Associate
degree
5%

We noticed in the results that, nearly half of the respondents were studying towards
their Bachelor’s degrees; whilst others were studying towards high school diplomas,
associate degrees, amongst others (Fig.7). It is evident from the results that majority of
those that engage in outdoor activities have attained a greater level of education. This
could be as a result of better exposure to the issues surrounding health and fitness or
could be due to keen interest in nature, as a result of their learning.

24
Figure 8: Outdoor Activities’ Participation

25%

Participants of outdoor
activities
Non-participants of
outdoor activities
75%

Three-quarters of the entire respondent participate in outdoor activities. This could


translate into being; out of every 10 people, roughly 7 people engage in outdoor
activities. This further explains how big the market is (Fig. 8).

Figure 9: Outdoor Activities’ Engagement Type


35%
30%
25%
Percentages

20%
15%
10%
5%
0%
Hiking Climbing Mountain Bird Rock Road Wild Other
biking watching climbing cycling camping
Activities

All respondents had their preferences in terms of what outdoor activity they enjoy.
Running and walking (chosen as “other”) are the most popular outdoor activities,
followed by road cycling (Fig.9). As many members of the population are increasingly

25
interested in health and fitness, it is only normal for a great proportion of the
respondents to be involved in outdoor fitness exercises.

Figure 10: Outdoor Activities’ Area of Participation


50%
45%
40%
Percentage of responses

35%
30%
25%
20%
15%
10%
5%
0%
Once in a while Sometimes Often Everytime

Results reveal to us that majority of participants take part in these activities once in a
while and 39% claim to participate in these activities sometimes.

Figure 11: Outdoor Activities’ Area of Participation


40%
35%
30%
25%
20%
15%
10%
5%
0%
Your Yard Park/Area within Park/Area Park/Area Other
neighbourhood outside outside town/city
neghbourhood

Most of these participants partake in these outdoor activities in a park/area in their


neighbourhood (Fig. 11). This shows that most people prefer engaging in outdoor

26
activities within their convenience rather than travelling. We predict that those who go
out of their jurisdictions are outdoor enthusiasts.

Figure 12: Outdoor Equipment- Purchases

Purchase
Do not 45%
purchase
55%

More than half those that engage in outdoor activities in the U.K. do not purchase
outdoor equipment (Fig.12). It is baffling that 75% of the total population participates in
outdoor activities yet only 45% actually buy outdoor equipment. This reveals fairly low
enthusiasm in the participation of these activities, therefore showing that there are still
opportunities for greater penetration in the U.K. market.

4.2. Results from United States of America Market Survey

This survey was aimed at getting responses from people who were residents of the
U.S. It was a bit challenging in recruiting U.S. respondents as Swansea is less diverse
due to its size. Nevertheless, we were able to get 43 respondents for this survey (See
Appendix G).

27
Figure 13: Respondents, by Gender

Female
Male 49%
51%

Just over half of the respondents were males and the rest were females (Fig.13) (See
Appendix H for survey questions). This favours the research as it gives a fair balance to
the responses of both genders.

Figure 14: Respondents by Age


70%
60%
50%
Percentages

40%
30%
20%
10%
0%
18-24 25-34 35-44 45-54 55-64 65-74 75+
Age

Majority of the respondents fell under the “18-24” age group, and slightly over a quarter
of the population were between ages 25-34 (Fig.14). Majority of respondents were
students.

28
Figure 15: Respondents, by Ethnicity

Caucasian

3% 6%
11% Black/African American
50%
American Indian/Alaska
30% Native
Asian

Native Hawaiian/Pacific
Islander

From the collation of results, it was discovered that half of the respondents were
Caucasians and 30% were Black or African American (Fig.15). Based on our
secondary research, Caucasians also showed the most interest in outdoor activity.
However, an awareness of this should prompt the business to understanding their
ethnic perspective and cultural values. Nevertheless, it is advisable to employ diversity
marketing particularly in areas of communication as the U.S is made of diverse ethnic
groups.

Figure 16: Outdoor Activities’ Participation Rate


5%

Participate in Outdoor
Activities
Don't participate in
outdoor activities

95%

29
This result shows an even stronger participation rate than the UK, with a rate of 95%.
Only 5% of the population do not participate in outdoor activities (Fig.16).

Figure 17: Respondents, by Region

Never lived in USA


Pacific
Mountain
West South Central
Region

East South Central


South Atlantic
West North Central
East North Central
Middle Atlantic
New England

0% 5% 10% 15% 20% 25% 30% 35%


Percentages

Logically, we felt that consumers’ region in the U.S could determine how actively
consumers participate in outdoor activates. Results showed that most people were from
the West North Central region of the United States of America (Fig.17). This region
comprised of states such as; Minnesota, Iowa, Kansas, Missouri, North Dakota, South
Dakota and Nebraska. This could be a strategic location to focus on, as well as states
in the pacific and middle Atlantic.

30
Figure 18: Outdoor Activities, by Type
25%

20%
Percentages

15%

10%

5%

0%
Hunting Shooting Walking Dog Hiking Camping None Other
Walking
Activities

The result in figure 18 further shows a well diverse interest in the different outdoor
activities. However, of all the activity, Dog walking is the most popular activity; nearly
half of the entire U.S population own at least one dog (ASPCA, 2016), this could be a
motivation. Walking, Hiking and the “Other” category, which includes running, are also
popular too. The business already offers dog walking and hiking clothing and
equipment. However, as shown by the result and the information obtained from
secondary research, there is a big market for walking and running.

Figure 19: Factors taken into consideration when buying outdoor clothing
70
60
50
Percentages

40
Quality
30
Price
20
Return policy
10
0 Customer service
Not Slightly Important Very
important at important Important
all
Degree of Importance

31
In order to understand buying habits of potential customers in the United States, we
had to include a question aimed at understanding the factors taken into consideration
before making purchases. Respondents were asked to rate quality, price, returns policy
and customer service according to their preference. From the results, we discovered
that most people rated prices of the products as well as the quality very highly (Fig.19).
This in turn means that the business might need to have a competitive advantage in
both price and quality so as to be more attractive to customers.

Figure 20: Third Party Websites’ Usage Level


Don't use
3rd party
websites
17%

Use 3rd
party
websites
83%

We were able to understand that a high proportion (83%) of people who purchase
outdoor equipment/clothing actually prefer doing so through third party e-commerce
websites such as Amazon and eBay (Fig.20). This could prompt the business to include
their products on these third-party websites so as to be more visible to their target
audience.

32
Figure 21: Method of Purchase
60%

50%

40%

30%

20%

10%

0%
Mobile Computer Either Mobile or
Computer

From figure 21, we discovered that half of the population are happy to make online
purchases of outdoor apparel either through their mobile or computer. Forty four
percent of respondents have a stronger preference in using their computer and nearly
the entire population would rather not use their phone.

4.3. Results from Interview

In as much as the questionnaires provided useful knowledge in understanding both


markets, we conducted an interview to get an even deeper understanding of
consumers in both market. These interviews were semi-structured, in which the
interviewers (two members in the group) had set of questions prepared prior to the
interview (See Appendix I for transcription of Interviews)

From the interviews conducted for the U.S, we discovered that Jack Wolfskin was a
favourite outdoor brand due to its high quality in products and equipment. They also
mentioned that they were willing to switch brands on the basis on lower price and good
quality. Four out of the five people we interviewed had no idea what Cherry Tree
Country Clothing was – which supports the strong need for brand awareness for the
business.

33
Furthermore, one of the UK Interviewees emphasised on his keen interest in cycling, he
further revealed that he was not loyal to any brand but price was a priority for him when
choosing outdoor equipment.

Generally, we discovered from this interview that price and quality plays an enormous
role in consumers’ decision-making process and the loyalty of consumers can be easily
changed, if the business has a competitive advantage in price and quality.

34
5. Delivery/Implementation

Based on our regular interactions with the business, we discovered ways through which
we could enhance the existing set objectives, as we were keen to add substantial value
to the business.
The essence of the primary research was to deal with the first objective, which was to
understand the outdoor participation level. We decided to carry out two surveys
because we wanted to understand the differences between both markets and how this
impacts critical decisions for the business.
Based on the research findings, it was discovered that consumers from the US have a
greater outdoor participation level. Due to the variety in activities, a higher incidence of
outdoor activity is prevalent. This reality gives the opportunity for the company to
operate profitably.

These findings also point out that young people have a greater interest in outdoor
activities than older ones and this fact is supported by our secondary research. One
can say that this is resulted from a strong desire to look good, keep fit and live a
healthier lifestyle.
In comparing the survey results, both countries enjoy partaking in the same activities,
walking and running. People from western countries are enlightened about the negative
impact of obesity and excess weight and its influence on medical cost.
As expected, people from Minnesota, Iowa, Kansas and the rest of the West North
Central are more active in outdoor participation as these areas are more appealing to
outdoor enthusiasts. Therefore guiding the business on areas more worthy of
penetration.

In addition, these findings aided our understanding of U.S consumer buying behaviours
and habits, giving us a better knowledge of the target market and how to encourage
consumers to buy more of the company’s products. Critically, consumers confirmed
price to be the number one priority when they shop, they also voted quality as equally
very important. Based on the Interviews, an interviewee stated that he is loyal to Jack

35
Wolfskin clothing and footwear, however, if he got a better price deal from another
brand with a similar quality, he was willing to switch brands. This automatically signals
the importance of competitive and good quality products, although in many cases,
higher quality demands higher price.
Lastly, the majority of consumers revealed that they are more likely to use a third-party
website when they shop for outdoor products given the variety of brands and products.
By establishing the business on a third-party website, they are easily accessible and
exposed to their target audience. They can create brand awareness as it drives the
business to compete even more aggressively against other competitors and finally, it
can greatly improve sales.
The next crucial step for the group was discovering ways through which we can drive
sales, as this addresses the third objective. We brainstormed, sought guidance from
the literature and received advice from experienced consultants in the field (see
Appendix J). Consequently, we did the following:
 We registered the business with Industry-related website (See Appendix K) in
both the U.K. and U.S. By so doing, the company is grouped amongst other
similar businesses therefore providing better visibility to the consumers,
particularly when they search online.
 The team redesigned the company’s logo and website to attract consumers’
attention to the website (this was done as a template which could serve the
company in the future)
 We went further to create a landing page (See Appendix L) which provides an
easier platform for U.S. consumers. The company is also able to target its
product promotion or sales promotion to the U.S consumers in order to
encourage sales.

In addressing our final objective, which was to explore suitable strategies in developing
an international sales strategy, we sought the literature. We discovered that a market
penetration strategy was a suitable one considering the company’s finances and size.
As this was theory related, we conducted in-depth secondary research, which
highlighted the importance of social media, sales promotion and competitive pricing in

36
penetrating a foreign market. Regrettably, we were unable to run our social media
campaign due to time constraint.

We did not ignore logistics, as it’s a vital part of the business’ operation. Despite our
thorough research of understanding the U.S. customs and duty requirement, we further
went on to contact major courier services operating globally such as UPS (see
Appendix M). We discovered that the courier costs depended on a few factors such as:
the weight of the product/package, dimensions, where it is being posted from and
where it is being delivered to.

Lastly, we took a step further to determine how profitable this expansion will be for the
company. Since two members in the group are equipped with sound knowledge in
financial modelling, we decided to create financial projections for the business. Based
on the prices of the popular products, such as the Hoggs of Fife, we were able to
project sales revenues and total costs assuming the business begins full operations in
the U.S. in the year 2017 (Fig. 22). This was done based on the current total amount of
sales of outdoor equipment in the U.S. However, it is important for the business to take
note that the projected figures are based on assumption and informed projections, thus
it could be subject to change.
Figure 22: Projected Sales Revenue and Total Costs
£35,000

£30,000

£25,000

£20,000
Sales Revenue
£15,000 Total Costs

£10,000

£5,000

£0
Year 1 Year 2 Year 3

37
6. Evaluation

During the execution of this project, varying degrees of success was achieved. To this
end, we were still able to achieve material contributions that have severed the success
of the project and have created value for the business.

Gathering data for the U.S. was a challenge for the group in that it was difficult to obtain
U.S. citizens or residents to complete the survey. However we approached the School
of Management to assist us by sending emails to every U.S. student within the School
of Management. To augment what we thought may be a low response, we also decided
to send it to friends and relatives in the U.S. They helped even further by sending the
survey link to other people they knew that were from or lived in the United States of
America. Although we had a relatively low number of respondents but we were happy
to use his sample

We were determined to conduct a social media campaign, as this would have had a
huge impact on social media awareness. Our plan was to increase traffic to the
company’s website via Facebook and Instagram and to also track the number of people
going to the website as a result of our promotion. We also wanted to increase
conversion rate thereby increasing sales. However, this idea was constrained by time
and the business advised us not do the campaign (see Appendix N).

Notwithstanding, we were able to achieve all our four objectives. In so doing the group
aim too was achieved. Most of our efforts worked and added substantial value to the
business such as: re-designing the company’s website and logo, rebranding,
conducting interviews, and questionnaires, designing a landing page for the U.S.

The group’s success was especially evident in determining the natures of the U.K and
the U.S market, which understanding will serve management decision making in the
near future. Furthermore, the group successfully revealed the impact of customs and

38
excise duties, which in-turn would affect end consumer pricing. This initiative further
highlighted the supply chains issues including best delivery methods and quantities.
The group success is further evident in their highlighting of the opportunities and
threats of this new market. Opportunities included the market size and areas of greatest
outdoor spend, whilst threats were identified as the scale and scope of competing
companies, strong recall for high visibility brands such as North Face and L.L bean.

All of the success achieved was made possible through the adoption and close
attention to the project log.

39
7. Conclusion

This project was better for the group’s contribution rather than individual effort.
Although we faced certain challenges as each member had their different views and
interpretation on different subject matters. Having to constantly align each member’s
contribution with the project requirement was difficult. It was a challenge to reduce the
information and data collected to a concise and informative report

However these challenges strengthened us and we were able to reach a common


concensus. Flowing from the report, it is apparent that the U.S provides a market size
that can best serve the expansion of the company. In addition, the similar cultural
practices between the U.K. and the U.S. do not necessarily command the need for high
level of adaptation, hence making penetration more feasible.

Furthermore, in facilitating suitable and cost-effect distribution methods, the literature


has provided a well-informed data on the customs and duties for the U.S. We also
provided ways through which these duties can be managed by partnering with local
companies, through the exportation of partly completed goods, by being sensitive to the
$800 threshold below which customs and excise is not applicable.

The group was able to identify likely risks that the business might face which include
long established competitive companies, high visibility brand with strong recall,
customer loyalty to these brands, currency fluctuations and changes in domestic policy
in respect to customs and excise duty.

Moreover, this experience is one that the team would be happy to repeat again as it
grows experience, knowledge and understanding of the business environment. Overall,
we are confident that it was worth the effort because we achieved our aim and
objectives and positioned the business for better-informed decision-making. We also
believe that the organisation would be well advised to execute this project again, but

40
would derive even greater benefit if their prevailing circumstances, including financial
information, margin management, procurement, etc. were more revealing to the group.

41
8. Recommendations

The success of this expansion strategy lies in showing a strong sustainability plan.
From the group’s effort we strongly recommend a market penetration particularly in the
West North region of the U.S where outdoor participation is greatest. The purpose
should be aimed at increasing product sales and consequently market share.
Penetrating the market would not rely on a single strategy but several tactics that are
described in the subsequent paragraphs.

It is important to grow the strong visibility of the brand, as this will therefore increase
brand recall. It would also serve to strengthen the domestic market whilst
simultaneously compliment the US expansion strategy. Social media plays a huge role
in achieving this. As a result, it is very important that Cherry Tree Country Clothing
conduct an aggressive social media campaign on major social media platforms such as
Facebook, Twitter and Pinterest. However business is unable to successfully run this
campaign themselves, then it could be outsourced to public relations experts.

We further recommend a flexible business model able to respond to competitive


behavior, e-platform and logistics/supply chain. As analysed in the Literature, the
business model could be re-adjusted to answer questions such as; are we well
informed about our target customer? What products will serve them better and how will
our operations change to serve them? How can we best deliver products to them? And
how much will these cost us?

Critically, the company in the wake of the cultural nature of the US communication style
should be specific and interesting in their marketing communication. We have partly
addressed this issue by making recommended changes to both logo and website (see
appendix O), using less text and more visual aids. We recommend this because the US
market clearly responds positively to clear product promotion. These recommendations
would be further optimized through social media, brand awareness and product
knowledge communications.

42
Critical for a long term pricing competitiveness, we recommend partnering with local
agencies whose local market knowledge will serve to reduce risk and decrease the
company’s cost of excise duties. Consumers can be discouraged by the delivery
charges and may opt for a local company whose charges are much minimal. Therefore
having a local agent, who can stock the business’s product, will minimise distribution
cost and encourage more sales.

Our research revealed that consumers are increasingly becoming health-conscious.


Walking and running have become one of the most popular outdoor activities. As a
result, the business can extend its product range to take advantage of growth in this
segment. Since the business already stocks accessories for walking they can include
running accessories such as running watch, running hats, running gloves, water bottles
and armbands for running etc.

43
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52
10. Appendices
10.1. Appendix A

53
10.2. Appendix B

Teaching Block 1
Week 2
Date: 5/10/2015
Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack,
 Group had first meeting and introductions

 We made a list of the companies we would like to work with; this was based on
individual priorities.

 Everyone had done some research as to why they chose the business they did,
and how it will benefit the entire team if we chosen a particular business.

Week 3
Date: 12/10/2015
Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Narrowed down the companies we would like to work with into the top three
priorities based on our research.

 We agreed on the top five businesses we wanted to work with

 Everyone was assigned a business to research in-depth on and to find


reasonable questions to ask them when meeting with them during that week

Week 4
Date: 19/10/2015
Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 We discovered that we were working with Cherry Tree Country Clothing and
emailed them regarding what the group are able to do for them.

 We agreed on the time and platform of communication.

 Finally we discussed possible ways through which we can tackle the report as a
group.

54
Week 5
Date: 30/10/2015
Venue: Supervisors Room in School of Management
Time: 6pm
Participants: StefaniaBoscari, Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 We had our first meeting with our supervisor Stefania Boscari, we introduced
ourselves to her.

 She then presented us with documents entailing the ethical procedures fro
collecting primary data for the business. We were told to go through each ethical
concern as instructed by the University.

 Boscari required us to submit this form in oir next meeting.

Week 6
Date: 4/11/2015
Venue: Library
Time: 9am
Participants: Bethan, Ava, Odufolakemi, Faith, Mofe, Sasha
 The group had our first Skype call with Bethan from Cherry Tree Country
clothing

 We introduced ourselves and discussed the project brief as well as the outcome
of the project

 Bethan brought to our attention, specific concerns of the business and


suggested ways we could be of help to the business.

 The team was able to ask questions during this meeting and Bethan was helpful
in answering them.

Week 7
Date: 9/11/2015
Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Group came together to discuss about the outdoor industry

 Each member was told to do some research about the U.S outdoor industry and
the potential threats that exist in the market.

 We also met with StefaniaBoscari to hand in our signed documents

55
Week 8
Date: 16/11/2015
Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Shadrack, Mofe, Sasha
 We discussed the findings of our result as posed in the previous meeting

 Each member was to also research on the differences between the United
Kingdom and North America

 Group to think of 10 questions each for the questionnaire

20th November, 2015


Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Group working on progress report

 Work has been split up, by Monday 23 November each group member should
have finished their individual research on each section they were assigned

 Group will now come up with aims and objectives of the progress report, as well
as going through introduction stage

 Discussed how the group has to research the U.S.A (Tax, Customs, Pestle)

 Group trying to figure out cultural differences in the USA (we were confused on
the exact culture to focus on)

23rd, November 2015


Venue: School of Management
Time:6pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Continuing with progress report

 Every member of the group has brought individual sections of literature review

 Analyzing the work done and starting to put it together

 Working on the introduction section of the progress report together

24th, November 2015


Venue: Library
Time:9am
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha

56
 Group had another Skype call with Bethan as we discussed how we were
progressing with the report and we continued to ask any questions we did not
understand from the project brief

 Questions were asked about expansion into the U.S, the business confirmed
that were already sending out parcels to the U.S

 Questions were also raised regarding delivery and transportation, SWOT


analysis of the company and most popular product.

25th, November 2015


Venue: School of Management
Time: 11am
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Group continues to work on progress report

 More work being split into smaller sections

27th, November 2015


Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Continuing to put the progress report together

 Discussed and printed out draft questionnaire

 Discussing the location to carry out the survey; we agreed online, Singleton and
Bay campus

 Delivery, Research and Evaluation are left to do in the progress report

 Group meeting on Wednesday in order to Skype call with Cherry Tree


representative

4th December 2015


Venue: Library
Time: 2pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Discussing the ethical forms

 Ensure participants know exactly what the survey will be for – for a primary
research conducted by students of Swansea university and for Cherry Tree
Country Clothing, state

57
 The group is working on the evaluation part of the report

 Defined guidelines company can use in order to successfully penetrate the


market

 Put together theory, data and information gathered to try come up with a
conclusion

(All group discussions during exams and the holiday period were online as well
as Whatsapp)

Teaching Block 2

8 February 2016
Venue: Library
Time: 2pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Based on the feedback from the progress report, we are putting together more
detailed questions for our survey that will be more relevant and logical

 Agreed on putting out two sets of questionnaires

 One questionnaire would be based on outdoor activates in the US and the other
will be based on outdoor equipment.

 Setting out deliverables for the teaching block and the set time to achieve each
target and compete each task.

15th, February 2016


Venue: Library
Time: 3pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Focusing on increasing awareness of Cherry Tree Country clothing on social
media (twitter and YouTube)

 Majority of primary research has to be done in the coming week or two

 Locating as many American in the UK would be key as respondents for the


survey.

19th February 2016


Venue: Library
Time: 1pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Discussed the progress of the being conducted

58
 Discussed ways to reach more respondents

24th February 2016


Venue: Supervisor’s office
Time: 1pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 StefaniaBoscari discussed how the group was getting on with project as a whole

 She gave us ideas on our primary research- collecting data from both UK and
US respondents.

29th February 2016


Venue: Student Accommodation
Time: 3pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Group choosing time slot for presentation

 Dividing work on final year assignment

 Working out how tax, customs and exporting works in the USA

9th March 2016


Venue: School of Management
Time: 3pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Group had a meeting our supervisor S. Boscari

 Had questions on presentation, report and individual reflections

 Beth from Cherry Tree informed us through email that the social media might be
an impossible task due to time constraint.

 Organising dates to meet up to so as to practice for presentation

 Literature review for final project nearly done

20th, March 2016


Venue: School of Management
Time:1:15 pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Made a short video of the experience we have had as a group

 Had a discussion on the work we have done on the literature review

59
 Organising Easter Break times to meet up

21st, March 2016


Venue: School of Management
Time: 2 pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Group is putting together slides for the presentation

6th, April 2016


Venue: School of Management
Time: 2 pm
Participants: Ava, Odufolakemi, Faith, Mofe, Sasha
 Group started rehearsing for our presentation

 Dividing slides to each member

7th, April 2016


Venue: School of Management
Time: 1 pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Continued rehearsing for our presentation

 Discussed final year project and what we have done

11th, April 2016


Venue: Student Accommodation
Time: 3 pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Continue rehearsing for presentation on Thursday, tried presenting without using
our notes

 Discussions on final year report

12th, April 2016


Venue: Student Accommodation
Time:4 pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Group is trying to get our timings and length of presentation right

 Trying to gather information and proof of everything group has done for personal
reflection

13th, April 2016

60
Venue: Student Accommodation
Time: 1 pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Final rehearsal before presentation tomorrow, timing and delivery went well

22 April 2016
Venue: School of Management
Time:12pm
Participants: Ava, Odufolakemi, Faith, Mofe,
 Discussed the individual report, our supervisor was explaining that there is no
particular format.

25 April 2016
Venue: School of Management
Time:3 pm
Participants: Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Group came together to finish compiling our final year project

26 April 2016
Venue: School of Management
Time:3 pm
Participants: Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Finalising group report, nearly finished

27th April 2016


Venue: School of Management
Time: 3pm
Participants: Odufolakemi, Faith, Mofe, Shadrack, Sasha
 Reviewing of project report

29th April 2016


Venue: School of Management
Time: 1pm
Participants: Odufolakemi, Faith, Mofe, Shadrack, Ava
 Reviewing of project report

2nd May 2016


Venue: School of Management
Time: 1pm
Participants: Odufolakemi, Faith, Mofe, Sasha
 Final review, signing off and submission of project repor

61
10.3. Appendix C

Team Member Name Project Role

Odufolakemi Ojuolape Oduwole Project Manager/Coordinator

Faith Kanyinsola Abolarinwa Project Analyst

Iyellakeme Shadrack Ileberi Project Facilitator

Sasha Panashe Ushe Project Administrator

Haitian Xiong Project Steering Board

Mofe Samuel Nanna Project Steering Board

62
10.4. Appendix D

63
10.5. Appendix E

64
10.6. Appendix F

Q1. This survey is being carried out by Swansea University Third Year Students, in
order to gather primary data for their Final Year Project. Names and other personal
information are not required to partake in this survey (anonymous), and answers are
kept completely confidential.

If you are satisfied with this, please select "YES" to move on with this survey, and if not,
please select "NO".

 Yes
 No

Q2. Are you male or female?

 Male
 Female

Q3. What age group do you fall under?

 18 – 24
 25 – 34
 35 – 44
 45 – 54
 55 – 64
 65 – 74
 75+

Q4. What's the highest educational degree you have completed?

 Did not complete high school


 High school diploma

65
 Some college, but no degree
 Associate degree
 Bachelor’s degree
 Graduate or professional degree

Q5. Where do you currently live?

Q6. Do you engage in any outdoor activities? If yes, which one?

 Hiking
 Climbing
 Mountain biking
 Bird watching
 Rock climbing
 Road cycling
 Wild camping
 Other: _________

Q7. What is your employment status?

 Student
 Employed full-time
 Employed part-time
 Unemployed
 Other (please specify): ____________

Q8. Where do you engage in these outdoor activities?

 Your yard
 Park or other area in your neighbourhood
 Park or other area outside your neighbourhood, but within your town/city

66
 Park or other area outside your town/city
 Other (please specify): _____________

Q9. Do you buy outdoor equipment?

 Yes
 No

67
10.7. Appendix G

68
10.8. Appendix H

Q1. This survey is being carried out by Swansea University Third Year Students, in
order to gather primary data for their Final Year Project. Names and other personal
information are not required to partake in this survey (anonymous), and answers are
kept completely confidential.

If you are satisfied with this, please select "YES" to move on with this survey, and if not,
please select "NO".

 Yes
 No

Q2. Are you male or female?

 Male
 Female

Q3. What age group do you fall under?

 18 – 24
 25 – 34
 35 – 44
 45 – 54
 55 – 64
 65 – 74
 75+

Q4. Please specify your ethnicity below:

 White
 Black or African American

69
 American Indian or Alaska Native
 Asian
 Native Hawaiian or Pacific Islander
 Other (please specify): _________
 Caucasian

Q5. In which region of the United States of America do you or have you lived in?

 New England (Maine, New Hampshire, Vermont, Massachusetts, Rhode Island,


Connecticut)
 Middle Atlantic (New York, New Jersey, Pennsylvania)
 East North Central (Ohio, Indiana, Illinois, Michigan, Wisconsin)
 West North Central (Minnesota, Iowa, Missouri, North Dakota, South Dakota,
Nebraska, Kansas)
 South Atlantic (Delaware, Maryland, District of Columbia, Virginia, West Virginia,
North Carolina, South Carolina, Georgia, Florida)
 East South Central (Kentucky, Tennessee, Alabama, Mississippi)
 West South Central (Arkansas, Louisiana, Oklahoma, Texas)
 Mountain (Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona, Utah,
Nevada)
 Pacific (Washington, Oregon, California, Alaska, Hawaii)
 I have never lived in the USA

Q6. Have you ever participated in any outdoor activities?

 Yes
 No

Q7. Which outdoor activity have you participated in?

 Hunting

70
 Shooting
 Walking
 Dog Walking
 Hiking
 Camping
 None
 Other (please specify): ________

Q8. How do you prefer to purchase your outdoor clothing?

 Online
 In-store
 Either online/in-store

Q9. How would you rate the elements below when purchasing outdoor clothing?
Not important at all Slightly important Important Very important

Quality

Price

Returns
Policy

Customer
Service

Q10. Have you ever used a third-party/e-commerce website such as Amazon or eBay,
to purchase outdoor clothing?

71
 Yes
 No

Q11. If you were to shop online for outdoor clothing. how would you do so?

 Mobile
 Computer
 Either Mobile or Computer

72
10.9. Appendix I

Introduction
Odufolakemi: Hello guys, we are a group of final year students pursuing our final year
project at Swansea University. We have been assigned to a company called Cherry
Tree Country Clothing, which sells different brands of outdoor clothing and equipment.
So our main task here and our main objective is to create an international sales
strategy in order to raise brand awareness in the United States of America, even
though their based in Wales in the United Kingdom. So in this video we are going out to
interview people from the United States of America and the United Kingdom as well
and how they engage in outdoor activities, how often they do it and if they actually buy
outdoor equipment and where they buy it from. And if they're willing to switch brands,
what factors would they take into consideration when changing brands. So it's basically
all about that and getting to know about the outdoor activity industry, thank you and i
hope you enjoy watching this.

Interview 1
Odufolakemi: Hello
Interviewee: Hi
Odufolakemi:: Sorry where are you from?
Interviewee: I'm from London
Odufolakemi:: So you're in school here?
Interviewee: yeah I'm in the school of management
Odufolakemi:: do you live in Swansea as well?
Interviewee: yeah as a student, as a student yes
Odufolakemi:: So you said as a student, do you do any other thing, apart from uni?
Interviewee : Not really no
Odufolakemi:: So do you have a part time job or anything?
Interviewee : No
Odufolakemi:: Do you engage in any outdoor activities?
Interviewee : I cycle occasionally and i also play football occasionally, don't really do
anything

73
Odufolakemi:: So about cycling, of course you bought a bicycle, where did you get this
bicycle from?
Interviewee: I got it from a store in Swansea when I first got in uni, I was living in the
student village and it was a quicker way for me to get to uni and that's how it started
Odufolakemi: Do you remember the name of the bicycle you got?
Interviewee : Sorry no
Odufolakemi:: Why did you choose that particular one?
Interviewee: It was in my price range, its good for hills and its quite heavy
Odufolakemi:: So that means you take price into consideration when you buy, so is
there anything you like apart from cycling, i know you do football, apart from that, any
other thing?
Interviewee : No
Odufolakemi: Have you ever heard of Cherry Tree Country Clothing?
Interviewee : Not before this no
Odufolakemi:: Is it through us or were you able to get knowledge of them from
somewhere else?
Odufolakemi: So Cherry Tree Country Clothing is an outdoor store, it has different
brands and equipment like jackets, stuff for hiking, stuff for walking, stuff for cycling,
anything really and its based in Wales. We are just trying to increase the brand
awareness by telling people about the company by interviewing people and that's it
Interviewee :okay
Odufolakemi: Thank you for the interview

Interview 2
Faith: Okay and you go hiking as well?
Interviewee :Yeah
Faith: How often do you do it?
Interviewee : With soccer I play after every two weeks, and hiking I do it every day
because that's the normal thing to do
Faith : Okay, where are you from?
Interviewee : I am from the USA

74
Faith : In the US, where in the US?
Interviewee: I live in California
Faith : Okay nice, so do you buy outdoor equipment? obviously you said you do hiking,
so what equipment do you use?
Interviewee : The most important thing to buy are hiking boots, they are high range but
they are strong and have a strong force level
Faith : Okay so you buy these boots from the US?
Interviewee : Not necessarily, I tend to buy it online
Faith : Oh you buy online? When you're buying products online, you can't see them
physically, what are those things you consider when buying your hiking boots online?
Interviewee : There is mostly three things, the price, the brand name and i look at
reviews to see how good the boots are
Faith : Oh to see what customers said about it, okay regarding pricing, if the price is too
high you're not going to buy it?
Interviewee : Not necessarily because with hiking boots the quality tends to match the
price, so the higher the price the higher the quality
Faith : So you would go for a higher price? You're rich!
Interviewee :Not necessarily
Faith :Okay so what brand do you buy?
Interviewee : Jack Wolfskin
Faith : Why do you like that brand?
Interviewee : It's the most respected brand
Faith : In the US?
Interviewee : In the world in general, its mainly a United Kingdom provider, they are
based in the United Kingdom so you can't really get it in the US. So you have to buy
online
Faith : Okay so would you be willing to switch brands?
Interviewee : If there is something of better quality I see, I will definitely buy
Faith : What if you get of the same quality but lower price?
Interviewee : I am ready to compromise and do that
Faith : Okay have you heard of Cherry Tree Country Clothing?

75
Interviewee : No no
Faith : Cherry Tree Country Clothing is a retailer in Wales, retailing outdoor equipment
and clothing, so you can check on their website and you can check them on Facebook
as well, I'm sure you might find some hiking boots. It was nice speaking to you

76
10.10. Appendix J

Preparing the Groundwork

Get company-wide commitment. Every employee should be a vital member of your


international team, from the executive suite to customer service through engineering,
purchasing, production and shipping. You're all in it for the long haul.
Define your business plan for accessing global markets. An international business
plan is important in order to define your company's present status and internal goals
and commitment, but it's also necessary if you plan to measure your results. Plan at
least a two-year lead-time . It takes time and patience to build a great, enduring global
enterprise, so be patient and plan for the long haul.
Build a website and implement your international plan sensibly. Many companies
offer affordable packages for building a website, but you must decide in what language
you'll communicate. English is unarguably the most important language in the world,
but only 28 percent of the European population can read it. That percentage is even
lower in South America and Asia. The USA enjoys a high percentage of persons whose
native language is NOT English.

Understanding the Culture of the USA


One big difference between doing business domestically and internationally is culture.

77
As an aside be aware that less than 25 percent of U.S. business ventures abroad are
successful. "A lot of that is because Americans don't do their homework or because
they think the rest of the world should do business the way they do business,"
Therefore :

 Build a relationship before you get down to business. "That entails making
small talk and getting to know one another without [immediately] getting into
business discussions," she says.

 Don't impose time limits. "Keep [the meeting] as open as possible because it
adds strength to your negotiating position."

 Do your research. This applies to both the greater target market and to the
geographies most suited to your "product profile".

 Understand body language. "People think [body] language is universal-it's


not," she says.

 Dress with respect and authority. This should be self-explanatory. If it's not,
seek the help of an image expert.

Financing / Export Procedures / Lead Times


As with any growth plan, expanding internationally requires financing. And growing
globally requires special capabilities when it comes to finances. Many distinguished
institutions both in the UK and the USA can be approached for advice and assistance
with regards to Bank guarantees for working capital loans and guarantees repayment
of loans or makes loans to exporters of UK . goods and services. They can also offer
exporters credit insurance to protect against nonpayment by foreign buyers.

78
Brush up on your documentation and export licensing procedures. If you find it
too time consuming, hire a freight forwarder who can fill you in on the spot. Ask a lot of
questions. Use their expertise to your advantage.

Set up terms, conditions and other financing options. Agree on terms of payment
in advance, and never, ever sell on open account to a brand new customer. No ifs,
ands or buts. Just don't.

Hire a good lawyer, a savvy banker, a knowledgeable accountant and a seasoned


transport specialist, each of whom specializes in international transactions. You may
feel you can't afford these professional services, but you really can't afford to do without
them.

Finding a Foreign Distributor


As tricky as it can be to obtain financing for a global expansion program, finding foreign
business partners can be even tougher. If you can find foreign distributors for your
product, you will be able to simply sell them your products and let them worry about
reselling them at a profit in their domestic markets. Distributors are nice because they
can offer foreign customers top-notch service and are easier for you do deal with
because they typically buy enough of your product to build up an inventory.

When assessing the use of a foreign distributor:

 You can eliminate many foreign distributor prospects by deciding whether you
need a stocking or non-stocking distributor. Stocking distributors are generally
larger firms that will commit to purchasing an inventory of your product.

 If your product requires a salesperson knowledgeable about technology and


other special aspects of your product, you will obviously require a distributor
who can provide that type of sales force.

79
 The best distributor will be one with a track record selling to the companies or
consumers who are target markets for your product.

 You will want prompt, competent responses to your requests for information
or service. Make sure your phone calls, faxes and e-mails are answered in a
timely, satisfactory fashion.

 Meet your prospects in person, and, as always, get and check references.

The Internet is having a large impact on the way international business is conducted.
This impact is especially significant when it comes to finding leads for international
trade partners. You can look at TradeNet, the U.S. government's online trade-matching
service, for numerous links, databases, message boards and other tools.

Shipping procedures are a paramount concern when moving products long distances.
High-value items may be shipped by air, but many products come by ship. This often
means transit times measured in months, with the associated risks of missing market
opportunities.

80
10.11. Appendix K

81
82
10.12. Appendix L

83
10.13. Appendix M

84
10.14. Appendix N

85
10.15. Appendix O

86

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