Kraft Carpets Case Summary
A report on consideration of selling the products in the foreign marketHere we are considering of exporting the products of Quality Kraft Carpets ltd (QKC) in the foreign market. In this case we should consider in few factors which will affect the company 's success in the foreign markets. I think the company should hire local representatives to sell its products making 1-2 years short term contracts. As the company is small and flexible it can make various of sized and patterned carpets according to its USA competitors products research and consumers demand. Here are the list of actions the company can do.
1.As the product is high quality the sales representatives can approach to the high profile customers like hotels, offices etc.
2.If …show more content…
Its average sale in a year is £1,764,000 and is reached just after 5 years of its start and never gone down but stayed by average of £347,000 higher than its average sales. It means the company can be successful in the US market showing similar graph in the UK, but with a bigger margins.
Quality Kraft Carpets Ltd sales (£000)Year1991199219931994199519961997199819992000200120022003200420052006Sales5006408201,2801,7602,3002,9002,1002,0001,9701,9501,9601,9902,0101,9502,100The graph below shows its product sales through contract and retailer. It says the sales are grown constantly by contract. So its also positive side that the QKC can sale its product through contract in the USA market.
ConclusionsThe Quality Kraft Carpets products will be successful in the USA market and I would support this decision. Because the key success in the United States is distribution., many companies set up their own company to run their distribution network You can appoint regional managers for various areas of the United States (anywhere from 2-12 regional managers is common). These regional managers would be responsible for appointing distributors and representatives in major cities in their region. You could end up with more than hundred distributors countrywide and these distributor accounts would be handled by your regional
1.As the product is high quality the sales representatives can approach to the high profile customers like hotels, offices etc.
2.If …show more content…
Its average sale in a year is £1,764,000 and is reached just after 5 years of its start and never gone down but stayed by average of £347,000 higher than its average sales. It means the company can be successful in the US market showing similar graph in the UK, but with a bigger margins.
Quality Kraft Carpets Ltd sales (£000)Year1991199219931994199519961997199819992000200120022003200420052006Sales5006408201,2801,7602,3002,9002,1002,0001,9701,9501,9601,9902,0101,9502,100The graph below shows its product sales through contract and retailer. It says the sales are grown constantly by contract. So its also positive side that the QKC can sale its product through contract in the USA market.
ConclusionsThe Quality Kraft Carpets products will be successful in the USA market and I would support this decision. Because the key success in the United States is distribution., many companies set up their own company to run their distribution network You can appoint regional managers for various areas of the United States (anywhere from 2-12 regional managers is common). These regional managers would be responsible for appointing distributors and representatives in major cities in their region. You could end up with more than hundred distributors countrywide and these distributor accounts would be handled by your regional