Novozymes: cracking the emerging market code Case Solution & Answer

Novozymes: cracking the emerging market code Case Solution

Furthermore, the new company would let Novozymes to focus on its core business operations together with maintaining the quality of its products. The establishment of independent business subsidiary could help the business to increase its sales mainly in China which could be done with its brand Suhong and being technology oriented. Moreover, the company would not need to reposition it self as well which might cause in creating more complexities for the firm.

It is considered that it is important for the multinationals firmsto use a valid reason for having higher costs than their competitors in maintaining and protecting their reputation. However, as the technology and quality gaps are narrowing, global firms like Novozymes should change its strategy and marketing tactics in order to reach out to those customers who are unable to pay for the premium products of the company. The new low cost company would enable the Novozymes to reach the low end customers of china and to target the larger segment of the market.However,would then be able to serve the both the segments in the market (high end customers and low-end customers).

Therefore, Novozymes should create a low cost subsidiary that would help the existing company to serve and compete in the mass market by being more lucrative and offering lower price products to the low end users.

1.     How should Novozymes approach their emerging markets marketing strategy?

The company’s decision regarding establishing an independent subsidiary would help the company to approach its emerging markets marketing strategyas this alternate would give the company to meet the needs of the low cost using products customers.Furthermore, the company should also improve Suhong’s products in order to make them affordable for the low end customers. This would also increase the likelihood of the success in the Suhong’s brand reputation which would also cause some kind of pressure on its competitors.It should also focus on its products durability and performance attribute in order to maintain the quality and reputation in the market.

Moreover, the entire brand positioning is required in order to maintain the market share of China. The company’s strategy to compete in the technological innovation would help it to disrupt the local market players. However, it also requires some additional efforts to approach the marketing strategy of emerging markets. The company may also acquire local firms and make their use in offering low cost products that would enhance the likelihood of increasing the market share by decreasing the local competition.Furthermore, the company may also make a joint venture with the other leading firm in the Chinese market. This would help the company to reduce the global and local competition and to utilize the partnering firm capabilities and resources by increasing its customers. The acquisition and joint venture would help a lot in decreasing the competition consecutively increasing the market share. In addition to this, this would help the company to access the local market of China more easily in addition, it would also increase the company’s knowledge and promote close understanding with the Chinese markets.

Furthermore, the company may also bring some vast technological changes (such as advance equipments and tools) with lower price products that become difficult for the local competitors to copy and produce according to that standard. The advance and cosmic technological change would help the company to make the pressure on its competitors,but it would require enormous investment and capital to meet the requirement……………….

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