Dressmann Challenges some of them Not cracked the

Dressmann Challenges (some of them) • Not cracked the Danish or the German market • Competition (low price/collusion? ) in these markets • Demographics • Old-fashioned image/consumer advertising dissonance • Possible long-term consequences of new approaches in Denmark/Germany • Stagnating in Norway, Sweden and (to some extent) Finland But also • A well-oiled and dedicated team/unified corporate culture • Earning a lot of money (but could earn more!) • Good position in N, S, SF, and doing well in Iceland/Latvia Problem definition: How can Dressmann develop its “affordable” image to be more upscale without losing its backbone customers and at the same time keep a uniform marketing approach and (thereby) become the market leader in Northern Europe? BI/C. A. Solberg 2010 © 2018 Taylor & Francis Dressmann

Market growth Long-term goal: Market leader in Northern Europe High ? Dressmann Exploration markets: Poland, Baltic states? Investment markets: Denmark, Germany? Secondary markets: Latvia, Iceland Low Established markets: Sweden, Norway, Finland Strong Weak Market position in local market Problem: Stagnating established markets and their investment markets aren’t really stars – yet! BI/C. A. Solberg 2010 © 2018 Taylor & Francis

Traditional Denmark Germany? Dressmann Norway Sweden How many TV spots in Who are our Finland Dressmaniacs Northern will Norway and main Iceland competitors Sweden follow us on Europe here? ? Latvia? ? 2005– 2007 this voyage? Internal External Innovative How should Dressmann position itself in its existing markets? © 2018 Taylor & Francis BI/C. A. Solberg 2010

Is there really scope for standardisation? Dressmann Norway/ Sweden/ Finland Sales Latvia/ Iceland Denmark/ Germany Introduction BI/C. A. Solberg 2010 Growth Maturing Stagnation © 2018 Taylor & Francis Decline

Ability to carry out international marketing communication High Multi-local advertiser Firm has in-depth market insight and a good resource base. Still it Dressmann should carry out local advertising, warranted by the diversity of market situations Low “Global” advertiser Dressmann Firm has a strong position in “global” markets, and a relatively good resource base. Should involve local managers/distributors in the development of ad strategies. “Glocal” advertising. Local advertiser Export advertiser Firm has limited leverage (resources and market knowledge) relative to its local rep and ad agency. Customised ads in every market Firm has limited leverage (resources and market knowledge) relative to its representatives and ad agency. Standard ads in global markets? Multi-local Global Industry globality Does this matrix apply to Dressmann? BI/C. A. Solberg 2010 © 2018 Taylor & Francis

Preparedness for internationalisation High Low Multilocal price setter Global price leader Market leaders in selected markets Unexposed to global forces => Dressmann Mainly local competition Market oriented pricing, adapted to each market. High price strategy “Global” market leaders Global competition Cost/market-oriented Cost/market oriented pricing with “global” high prices based on “one world price” Local price follower Global price adaptor Limited resources and leverage Dependent on local representatives Unexposed to global forces Cost-oriented, standard prices – but willing to yield in price discussions (if exporting is a priority) Newcomers to global markets Global competition Competitive-oriented pricing – adapting to the global leaders Pressed on margins Multi-local Dressmann Global Industry globality One price in all the markets? Or the same price level relative to competitors? Carl Arthur Solberg 2010 © 2018 Taylor & Francis

Deep Dressmann Federation Market insight at HQ Confederation Local barons Dressmann Civil war Shallow Mainly the local rep Mainly the central HQ Influence on marketing decisions Where is Dressmann headed as it expands into new markets? BI/C. A. Solberg 2010 Does it have enough clout at HQ to maintain HQ control? © 2018 Taylor & Francis

Three challenges: How to “travel” from different positions in the “image grid” to eventually end up in the same location in all markets? What role should Denmark and Germany test-design stores play in this process? - As forerunners of a uniform design image? - As local variants of a theme? How should Dressmann organise its international marketing team to match these challenges? BI/C. A. Solberg 2010 © 2018 Taylor & Francis Dressmann

Is there any “one solution”? Dressmann Hardly, but one important ingredient would possibly be to organise the marketing department into an international team that leaves some leverage to the two new problem children in the family. Thorough market research is needed in order to find the firm’s position on the conceptual map – in all markets. Whether it should invest in Poland the other Baltic states is a question of resource allocation. But it needs to do some basic investigations first. BI/C. A. Solberg 2010 © 2018 Taylor & Francis

Critical success factors Design Pathways to uniform brand image BI/C. A. Solberg 2010 © 2018 Taylor & Francis Dressmann