EVALUATION OF PINTO WITH 4PS AND ENTRY STRATEGY TO FOREIGN MARKET

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EVALUATION OF PINTO WITH 4PS AND ENTRY STRATEGY TO FOREIGN MARKET

International Marketing II

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Abstract

The next tutorial work will be focused on the development of the history of Pinto, and how they reached the position they are now in the markets will be mentioned later. This work will help any student who is willing to know how much Pinto has get from the market and how they could take advantage of them. We could read the description of this project, and historical data or background about the firm since its beginnings up to now. also analyzes the current market in which PINTO develops and the internationalization to Peru and Colombia specifically the clothing line “Black and white” describing their advantages and disadvantages as well as the strategies applied for entry to the international market, also analyze the level of difficulty to getting both markets and to conclude know at what stage of the life cycle is our chosen product.

Background

        This project was chosen for the stability that this company has since their very begging. It is so easy to see how the company has taken advantage from the market and use some international point in order to produce their main products because, locally, they felt in disadvantage form the regulatory of investments in the domestic markets. The felt demotivated to keep producing their selected product in a country where they did not have a lot of opportunities to grow as an industry.

In Ecuador, they were seen as that company that would change the image of the national production and industry. However, they had to move in order to keep operating with lower cost and lower risk. They could think in many strategies in order to not be affected by their current situation, nevertheless after a deep analysis they could take the best near decision for the health of the company and stakeholders.

Description

        The next work is related to the analysis of the strategy that makes them establish in the international market and being accepted by them also analyzing the different ways that PINTO do to enter in two International Markets with the Clothing Line Black and White and determine the current position in the market.  This would be focused on the perspection from the clients, how they see this kind of movement or transactions in order to understand them as part of the group of people who are the most valuable of the company. The analysis is going to be based on results, and understand the current reality of them as a company. Sometimes many companies have fear to fail or not to achieve their goals, however, they as a company has all the integrity to fail and learn about the errors in order to keep in mind their goals. The level of deep is going to be the most measurable as we can as not been part of the company.  

Historical Data

We choose the company Pinto that is in the Ecuadorian market for over 99 years, engaged in the pursuit of excellence, to offer consumers quality products, innovative and appropriate prices.

Since 1913 Pinto clothing manufactures high quality combed cotton. Her clothes awarded: freshness, softness and absorption characteristics of cotton.

Pinto provides customers’ garments 100% combed cotton, the highest quality, manufactured with advanced technology and excellent human resources. Therefore, its products have been introduced into European and American markets. Pinto account in Ecuador with 41 shops located in the  following cities: Quito, Guayaquil, Cuenca, Manta, Portoviejo, Salinas, Machala, Quevedo, Babahoyo, Ambato, Riobamba Ibarra, Loja, Santo Domingo, Chone. So,the company has had a good experience with the internationalization of its product, Pinto become the third largest exporter of this Ecuadorian industry in 2002, whose only export market is Germany, sold 100,000 shirts per month (25% of production), which would represent $ 240,000 monthly. (Sandoval, 2002)

The Department of Design and Fashion Pinto has made ​​the brand be a Top of Mind in the Ecuadorian market for the audience looking for cool, comfortable and stylish clothes. Pinto is an integrated enterprise vertically operated from buying cotton to market their products, which makes it react faster to market demands.

Analysis of 4 Ps

PRODUCT

Pinto is oriented to the use of both women and men, in its product range Pinto has three product lines:

• Appliances with undergarments features
• Casual clothing line
• Sport

Despite these lines initially handled pinto, pinto now offers a unique variety for each market segment Pinto offers

• Commodities are products such as dress clothing common to be found in any clothing store
• Fashion Products that are more customized products with different models and are more suited to young people because it offers more colorful garments and wearing more stylish cuts.
• Pinto kids that is aimed at children online so that more children can dress colors best suited to their age and models
• Black and White is the latest developments of the brand I paint a line of clothing aimed at the young woman's clothes are stylish, modern and cosmopolitan garments of black and white.

Place

PINTO is established in several malls, its strategy is located in places where people buy clothes so frequent to show their products through the media and also at airports, Pinto does not have a separate room away from the media.

PRICE

PINTO is aimed at the middle and upper middle class and their prices are not high enough relative to the market, consumers will not have to spend much money on clothes.

PROMOTION

PINTO has enough time in the market; their brand has grown to a great recognition during this time, although doing so is maintained by advertising campaigns

• TV
• go advertising
• radio
• use of social networks
• and sponsoring various events

PINTO is touted to turn into shopping malls the sight of the local draws attention of customers to enter the premises and purchase their clothes; garments show the public offering for each line so keep the intention of customers.

Markets

In the 80s, the factory Business Pinto, located in Otavalo, in the north, was the closest thing to the "college". Between sewing and weaving, locals learned the secrets of the textile industry. But since then the economy has diversified -the industry accounts for 5% of the economy of the canton, away from commercial and traditional sector represents about 82% - Pinto is still a great generator of labor and investment in the area. The firm employs 370 people in Otavalo and over 700 nationally (including outlets). "Pinto has been instrumental in the training of the workforce that has been prepared in preparation, spinning specialized ... People out there and then installed his own workshop," says the mayor of Otavalo, Mario Cornejo. This is largely because every 20 years Pinto has renewed machinery factories. The latest modernization began in September 2012. To this end, it invested $ 4 million in 94 new teams among cutting machines, weaving, dyeing and clothing.

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