The online retailer MODOMOTO was established in 2011 in Berlin, Germany. It sells high quality men clothing from famous brands and has already more than 50.000 customers and 100 employees. The unique selling proposition of MODOMOTO is to create a fast and convenient shopping experience for customers. To reach this goal of convenience and rapidness MODOMOTO offers the customers an arranged unique package of cloth, which is compiled by their fashion stylist.
The purpose of this report is to analyze and discuss the marketing mix element strategies for introducing MODOMOTO men clothing from Germany to the Canadian market. This study will also provide solutions to the problems of entering the Canadian market as an online retailer for men clothing.
Table of Contents
1. Introduction
2. Current Market Situational Analysis of men clothing in Canada
2.1 Market Size Potentials, Opportunities, and Segmentations
2.2 Target Markets of MODOMOTO and Their Characteristics in Canada
2.2.1 Demographic Characteristics
2.2.2 Psychographic Characteristics
2.3. Major Competitors of male Clothing Retailers in Canada
3. Uncontrollable Market Environments and Constraints Affecting MODOMOTO in Canada
3.1 Regulations and legal rights
3.2 Taxation
3.3 Economic Forces
3.4 Cultural Forces
4. Suggested MODOMOTO’s Marketing Mix Strategies to Enter the Canadian Market
4.1. Product Decision Strategy
4.2. Promotion Decision Strategy
4.3. Pricing Decision Strategy
4.4. Distribution and Market Entry Strategy
5. Discussions and Suggestions of MODOMOTO’s Key Success factors to enter the Canadian Market
5.1. Promotion as the first Key Success Factor
5.2. Convenience and Customer Service as the second Key Success Factor
6. Conclusion
Appendix 1: Market size and growth rate of men clothing and accessories
Research Objectives and Themes
This report evaluates the strategic market entry of the German male online fashion retailer MODOMOTO into Canada, focusing on adapting its marketing mix to align with Canadian consumer behavior and the competitive landscape.
- Analysis of the Canadian men's clothing market size and growth potential.
- Evaluation of uncontrollable market constraints, including legal, economic, and cultural factors.
- Development of a tailored marketing mix (4Ps) strategy for international expansion.
- Identification of critical success factors, specifically promotional strategies and consumer convenience.
- Recommendation of a foreign direct investment approach for market entry.
Extract from the Book
3. Uncontrollable Market Environments and Constraints Affecting MODOMOTO in Canada
By introducing MODOMOTO to the Canadian market they also have to recognize some uncontrollable market environments and constraints which exist in Canada to be successful in every way. But what are these market environments and constraints? At first they should define this term. Uncontrollable elements create an uncertainty but if a company is likely to operate in foreign markets it has to face a unique set of uncontrollable factors. “The environment pertains to regulatory, social, technological, economic, and competitive factors to which the organization must be sensitive when developing a strategy” (Berkowitz, Eric N, 2006). In the following part MODOMOTO has to define these factors in relation to their new market in Canada to adjust or adapt to them in a manner consistent with a successful outcome.
At first they have to take a look on the new regulations and constrains obtain in the Canadian market. There are several regulations like the” Electronic Commerce Act” which regulates the Provision and Retention of Information as well as the Communication of Electronic Documents. So it is regulated how MODOMOTO must handle with secret documents like credit card information in the purchasing process.
The “Business Practices and Consumer Protection Act” focuses especially on the right of the consumers like providing consumers with an express opportunity to accept or decline an Internet sales agreement and to correct errors immediately before entering into it. The next legal right is the “Sale of Goods” in which all contracts for the sale of goods are applied. Vendors are obligated to pass good title to the goods to the consumer and the consumer has the right to receive the goods free from encumbrances. Furthermore MODOMOTO has to follow the “privacy” rules of Canada in which the consumer’s sensitive data are protected. (Deeth Williams Wall. 2003)
Summary of Chapters
1. Introduction: Presents the company background of MODOMOTO and defines the objective of the report regarding the expansion into the Canadian market.
2. Current Market Situational Analysis of men clothing in Canada: Examines the market size, growth trends, demographic and psychographic characteristics of the target group, and major competitors.
3. Uncontrollable Market Environments and Constraints Affecting MODOMOTO in Canada: Analyzes the external legal, economic, and cultural factors that the company must navigate to operate successfully.
4. Suggested MODOMOTO’s Marketing Mix Strategies to Enter the Canadian Market: Details the proposed strategies for product, promotion, pricing, and distribution to facilitate a successful entry.
5. Discussions and Suggestions of MODOMOTO’s Key Success factors to enter the Canadian Market: Discusses critical success factors, emphasizing the need for improved communication strategies and service convenience.
6. Conclusion: Summarizes the key findings and reiterates that success depends on adapting the German business model to Canadian market conditions.
Keywords
MODOMOTO, Market Entry, Canada, Male Clothing, Online Retailer, Marketing Mix, Consumer Behavior, Foreign Direct Investment, Greenfield Investment, Promotion Strategy, Customer Convenience, E-commerce, Competitive Analysis, Retail Trends, Brand Awareness.
Frequently Asked Questions
What is the core purpose of this study?
The primary objective is to analyze how the German online retailer MODOMOTO can successfully enter the Canadian men's clothing market and achieve profitability.
Which key marketing elements are investigated?
The report examines the 4Ps of marketing—Product, Price, Promotion, and Place (Distribution)—tailored to the specific requirements of the Canadian market.
What is the recommended market entry strategy?
The report recommends utilizing Foreign Direct Investment (FDI) through a Greenfield investment to maintain control over the company's unique selling proposition and knowledge.
What are the primary target groups?
The target group consists of men aged 18 to 60 who desire to be well-dressed but have limited time or interest in traditional shopping.
How does the report address competition?
It identifies major competitors like La Maison Simons, Winners Merchants International LP, and Sears, and suggests focusing on MODOMOTO's unique service of curated clothing packages to differentiate.
Which uncontrollable factors are considered?
The study analyzes regulatory requirements like the Electronic Commerce Act, taxation variations (GST/HST), and cultural differences in shopping behavior.
Why is communication adaptation critical for Canada?
Canadian media consumption differs from Germany; the report notes a higher preference for TV and social media, necessitating a pivot from newspaper advertising to broadcasting and digital channels.
What role does the "curated package" service play?
It serves as the company's Unique Selling Proposition (USP), offering convenience to customers who are either too busy or averse to traditional shopping.
- Citation du texte
- Bachelor of Arts Nico Grünewälder (Auteur), 2013, Introducing German clothes to the Canadian Market. A study of MODOMOTO's Marketing Mix Strategies, Munich, GRIN Verlag, https://www.grin.com/document/314353
