Impact of Country of Origin on the Effective Market Entry of a New Product

Abstract

Many companies communicate their company’s country-of-origin (COO) or the COO of its products to customers because they hope to benefit from the patriotism of domestic customers or from positive stereotypes those foreign customers has about products from that country. In this project we will introduce a new product brand named “Sigma” in Pakistan’s electrical market. Meanwhile there are only three main brands in Pakistan which have been monopolized Pakistan’s market by cost and quality. Terasaki, ABB and Schneider are three top brands. First one is of Malaysian and Japanese origin and later two are of European origin. Sigma is a Turkish brand and it compete Schneider in quality among 12 countries of the globe. Depending on the product category and the target market, a strong COO can translate into a competitive advantage for companies and can help them to win new markets. The COO of products is typically communicated through the phrase ‘Made in …’ or by using origin labels. Nevertheless, companies use a number of other explicit and implicit strategies to make the origin of their products known. This article and project will outlines and describes eight different COO strategies that we will be using to introduce our product in market which is often used in combination with each other. Beside COO our quality testing and customers feedback will let us know about product’s feasibility analysis for its successful emergence in market. In electrical market the product acceptance go through different stages. First it will be measured in “Quality” and so approved by consultants to nominate in project among other three brands and the second and third stage will be related to its “Price” which will be decided by contractors and panel manufacturers. In addition, practical examples are provided for each strategy