The Role of Exhibitions in the Marketing Mix Case Study #2

Transcription

1 The Role of Exhibitions in the Marketing Mix Case Study #2 Kovcheg Opening new European markets - SOLUTION

2 Question 1 The task force of Kovcheg pre-selected four trade shows in Belgium, Spain, Italy and Germany. Please find at least four additional trade fairs in other countries which are suitable as well. Hint for the students: Before using the different internet links, create a list of products, relevant countries and data which you are going to look up. Write down these points and try to use them for your internet research. Try to find some data as follows: date, product range, relevant target group - professional visitors, times of recurrence. Use chart 1. Finally select at least four criteria which are in principle relevant for Kovcheg. Chart 1 Data about the pre-selected trade shows Selected trade shows Target groups range Quota of relevant trade visitors Booth costs Location Recurrence of the trade show Date 2

3 Hints for the lecturer: Before the students work on this assignment they should read the following chapter: V. Trade Fair Participation, A. Selection Criteria. They should also read the description of the four different trade shows in the attachment. The following questions should be discussed before working on this task: Why should Kovcheg determine target groups? Which countries are relevant for the Russian company Kovcheg? Are there any export or import restrictions which have to be considered? Why are dates and recurrence of a trade show important for an exhibitor? Question 2 Which trade fair is the most appropriate trade fair for Kovcheg and why? Hint for students: To answer this question you should create a scoring model based on criteria which you have to select first. If possible you should discuss you decisions with other students or attendees. Use the prepared form below. To make it easier for you we have already chosen several criteria and weighted them! (Chart 2) Hints for the lecturer: Before the students work on this task they should read the following chapter: V. Trade Fair Participation, B. Exhibition Strategies and Styles. They should also read the description of the four different trade shows in the attachment. The following questions should be discussed before working on this task: What are the characteristics of a scoring model? Why are stand design and exhibition strategies linked? How and why do you weight the different criteria of the scoring model? 3

4 Define - criteria Appropriate trade fair Weight gi Points eij gi x eij Points eij gi x eij Points eij gi x eij Points eij Case Study #2 Chart 2 - Scoring model Pre-selected trade shows gi x eij Possible - criteria i Target group range Quota of trade visitors Booth costs Location Recurrence ( of the trade fair ) Total 100 4

5 Answer Alternatives Verona, Italy Appropriate trade fair MARMOMACC Weight w Poi nts p w x p Valencia, Spain, MARMOL Points p w x p Nuremberg Stone+tec Points p w x p Brussels, Belgium, Batibouw Points p w x p Criteria i Target group Significance of trade show for market Quota of trade Booth costs Catchment area of trade fair Recurrence (of the trade fair) Total Scoring procedure: The following shows the example of Kovcheg for choosing the right trade fair. First of all the criteria need to be selected which are decisive for the quality of an event from the viewpoint of an exhibitor. Some of the most important criteria are already suggested. Further criteria can be included. Weighting of the selection criteria. Every criterion gets a weighting corresponding to the individual significance for the quality of the event. The trade fairs are assessed with a score between 1 and 10 per criterion. This score shows how the quality is estimated by the exhibitor per criterion and trade fair in relation to the competing fairs. Weighting and score are multiplied by each other to calculate the score per fair and criterion. 5

6 The scores are added up for the total assessment. The higher the achieved total assessment, the better the assessment of the respective fair is from the view of the targets and quality requirements of the exhibitor. Example: In the attached case four fairs were judged at four different sites. The choice and assessment has to be understood as an example. The trade fair in Valencia has reached the highest total score with 698 for Kovcheg. The other trade fairs follow. Question 3: Describe and explain the exhibition/marketing strategy of Kovcheg. Explain the corresponding exhibition style and give some examples of what this would mean for the stand design. Answer Determine the marketing strategy The sales field strategy is to open new markets and the aim is to win new customers. The product, company, and brand have to be introduced at the same time. This means that Kovcheg has to make sure that its trade fair presentation is comprehensive as well as catchy. New contacts and open communication have to be given special emphasis. Therefore it is necessary to have a contactoriented exhibition style and to choose the right marketing techniques to make the product, company and brand known.kovcheg chooses the following marketing techniques for its trade fair participation and to address potential customers in order to draw attention to Kovcheg's trade fair performance: Trade fair brochures, presenting Kovcheg and its products; Advertising in trade fair journals and enclosures some months prior to the trade fair to create knowledge and attract attention; Using the organiser s advertising including sitemap and visitor brochures; Hyperlink to Kovcheg s homepage from the organiser s homepage. Apart from being an exhibitor at the fair, Kovcheg advertises its product by placing sculptures at highly frequented places on the fairground. Therefore attention will be drawn to Kovcheg s booth. 6

7 Question 4 Define six operational targets for Kovcheg. Answer Hints for the lecturer: Before the students work on the determination of targets they should read the following chapter: V. Trade Fair Participation, C. Exhibition Targets. The following questions should be discussed before working on this task: What are the criteria for operational goals? What is the idea behind these criteria? The students should be motivated to set personal goals based on these criteria. 7

8 Question 5 List all activities which are necessary to realize the participation. Make a proposal for a time schedule corresponding to the trade show you have selected. Please assume you have 12 months available for the planning and preparation of the trade fair participation. Answer 1. Planning, preparation, research 12-9 months before fair starts: Check economic situation, sales opportunities and distribution Cost expectations, return on investment Company decision on participation at the trade fair Budget approval Appoint project management/company team Internal coordination 2. Preparation, registration 8 months before fair starts: Request trade fair documentation Determine stand size Registration/allocation 8

9 3. Detailed planning 7 months before fair starts: Selection of exhibits Stand planning 4. Preparation of stand construction and advertising 6 months before fair starts: Selection of stand construction company Preparation of advertising 5. Order of stand construction 5 months before fair starts: Briefing of stand construction company Order of stand construction 6. Advertising measures 4 months before fair starts: Trade fair catalogue entry Supporting advertising measures Presentation by the stand construction company External staff, hostesses Dress code, uniforms 7. Preparation of stand management 3 months before fair starts: Commission catalogues/brochures Request communication lines/electricity/water supplies Determine stand personnel 8. Briefing of stand personnel 2 months before fair starts: Begin briefing stand team Name badges Hostess briefing Exhibitors passes 9

10 9. Last preparation and customer invitation 1 month before fair starts: Invitation of potential customers Packing and transportation of exhibits and material Journey to trade fair location 10. Start of fair: Hand-over by stand construction company Visitor records Visitors survey Success controls Observation of competitors 11. Re-working of the participation 1 to 3 months after the trade fair Working on the requests received on the visitor records (e.g. meetings, sending brochures and orders, handling sales) Internal communication (e.g. information of personnel which had stayed at home) External communication (e.g. advertising, contacts to non-visiting customers) Hints for the lecturer: Before the students work on this assignment they should read the following chapter: V. Trade Fair Participation, D. Stand Impact. The following questions should be discussed before working on this task: How much time does planning and preparation of a single activity take, e.g. stand building; advertising; preparation of a press conference? How many days, weeks or months before a trade show should the exhibitor invite his customers? When should a company register for the trade show? What is the organiser s interest? Is the participation in a trade show part of the daily work of a company? 10

11 Question You have already determined a set of objectives you will try to achieve. Please decide which of the instruments listed below are suitable at all and for whom (please tick for: 1 = very important, 2 = less important; 3 = no relevance). Please use chart 3. Answer 6.2 Please explain which of these tools is most important for your promotion campaign. Answer: The tool Direct Mailing is one of the most efficient and most relevant promotion instruments. Direct mailing campaigns help to get contacts to potential customers. Approximately 60% of the visitors are invited by the exhibitors. Direct Mailing is the best tool to invite visitors personally. It is most important to carefully prepare a meaningful database. The promotion campaign should start between six and four months before the trade show opens its doors. 11

12 Hints for the lecturer: Before the students work on the marketing aspects of the trade fair participation they should read the following chapters: IV. Integrated Exhibition Marketing, B. Specific Marketing Aspects V. Trade Fair Participation, B. Exhibition Strategies and Styles. The following questions should be discussed before working on this task: What kind of marketing instruments can be used by an exhibitor to promote the participation in a trade show? Who are the stakeholders and key players of a trade show? What are the characteristics of a trade show? Who contributes to the success of a trade fair? Question 7 After the trade show the project manager stated that the participation in the trade fair was quite successful. However, he mentioned that: The trade fair starts with the closure of the fair. Please make a plan listing which activities have to be done after the fair. Try to assign these activities to the responsible departments/people at Kovcheg. Keep in mind that the follow-up measures contain more activities than mentioned in the activity description of Question 5. Answer: There are three different measures which have to be put into practice. Processing the visitor records External communication and Internal communication. The visitor records which have been written during the trade show have to be processed. The visitors wishes can be: sending information material; preparing a tender; making an appointment with sales staff; inviting the customer to the enterprise; negotiating an order. 12

13 The successful appearance at a trade show is a very useful opportunity for public relations: If there is a successful completion of a contract during or after the trade show, regional newspapers or professional journals like to publish this story. Kovcheg is able to show its international competence and recognition. Not all customers of Kovcheg visited the trade show. However, they are also interested in getting the latest information about the market. Direct mailings, but also specially prepared brochures or newsletters might help to provide the customers with an unexpected service. As the appearance at the first international trade show is a highlight of Kovcheg s promotion campaign there is a need to inform the staff which remained at the headquarters about the results of the participation. Reports have to be prepared to inform the different departments: procurement, R&D, sales, management, and production. The instruments which can be used are: newsletters, personal meetings, reports, staff newspapers, direct mailings, company meetings, and intranet of the company. Hints for the lecturer: Before the students work on the planning of the trade fair participation they should read the following chapter: V. Trade Fair Participation, E. Follow-up measures. The following questions should be discussed before working on this task: What are the main objectives of the trade fair participation? What do visitor records look like? What kind of information do they contain? What kind of information can be collected at a trade show? 13

14 Follow-up measures and responsibilities Tasks Responsibility Remarks Processing the visitor records Contacts to key clients External communication Internal communication Information for management board Sales department Board members who attended the trade show Marketing manager and/ or stand manager Marketing department or members of the trade fair team Board members who attended the trade show The sales department is responsible for all economic measures after the trade show The board members have to take care of the VIP customers. The promotion or marketing department should prepare the material and contact the customers; sometimes the field staff informs the clients. Either there is a centralized information procedure or the respective team members who joined the trade fair team inform their departments. The management board of Kovcheg should be carefully informed about the results of the participation as the international strategy is essential for the company. 14