Question

TrueGrid manufactures the world’s strongest permeable paver. It’s a 100% permeable, which is an alternative to concrete and asphalt. It is permeable solution that allows the water to permeate through the surface and be detained below. It’s able to handle high traffic and heavy loads, so it can go from your drive way all the way to your high traffic 18 wheeler parking lots and everything in between. TrueGrid helps prevent flooding because the biggest reason is there is no run off, it allows all of your water to naturally infiltrate back into the ground just like it was before the area was disturbed. It gives you the ability to utilize a 100 % of your land. Barry stiles (CEO and founder) decided to exam the toxins in our environment. He conceived of TrueGrid as a way to use recycled plastic, and help flooding and other issues, and to keep plastic out of the ocean and landfills. Their mission is to Work, Play and Build Green so that our kids may live, eat and breathe clean. (TRUEGRID) TRUEGRID is made in the U.S.A. out of value USA crude materials. Industrial facility direct TRUEGRID works with all dirts and in all atmospheres. For insecure soils a geo-framework work or penetrable pinpoint texture might be useful between the dirt and the stone base. TRUEGRID essential flex joints enable it to embrace the ground with a dirt development. It won't clasp and unfasten like inflexible frameworks. This eco-accommodating clearing choice to cement and black-top that gives solidness and tempest water detainment. Which is a too tough and tempest water porous to lessen flooding just as quit rutting and disintegration by giving structure to ground adjustment. (TRUEGRID) The patented design takes into account the item to perform in high rush hour gridlock and overwhelming burden applications in all atmospheres. The flex joints are the greatest differentiator. The blend of vertical pressure quality and inherent adaptability is the thing that genuinely sets TRUEGRID separated from different materials utilized in streets. (TRUEGRID) TRUEGRID will normally outlive black-top and keep going as long as or longer than cement. It commonly last 25 to 60 or more years relying upon traffic and application. It is delivered from 100% Post-Consumer High Density Polyethylene (HDPE) with included UV inhibitors. The pavers are a mix of vertical pressure quality and implicit adaptability. There is speed and simplicity for the establishment by the temporary worker since it doesn't require staking or devices. In any case, staking is required for slants more noteworthy that 20 degrees. (TRUEGRID) The introduced expense of TRUEGRID will be significantly subject to extend size and rock costs in the territory. For a run of the mill business surface territory you could hope to see establishment costs between $5.50 - $6.50 per square foot which is commonly less expensive than cement. (TRUEGRID) TRUEGRID is infusion shaped in the USA produced using 100% post-purchaser reused HDPE, an extreme, dormant, groundwater impartial material. Utilizing TRUEGRID permits tempest water to penetrate through the total or grass fill so bio-remediation can help expel toxins from the water before it achieves the water table. Likewise, substituting TRUEGRID for cement takes out the CO2 emanations from the assembling of bond. Also, it lessens the urban warmth island impact related with cement and black-top clearing. (TRUEGRID) Transportation in Nigeria is one of the rotting frameworks that necessities genuine consideration. This is particularly evident with regards to the street transport. The poor condition of streets in Nigeria hasn't seen much change or improvement, assuming any, in the course of recent years notwithstanding government endeavors and guarantees. (Olawale) Transportation is one of the significant keys to the financial improvement and development of any nation. This is on the grounds that transportation associates individuals and spots. It improves social, financial, and social associations. Street transportation in any general public is intended to be the most effectively open. Individuals need street transportation for their everyday exercises, to drive to their work environments or study, to ship their items, for between city and intra-city travel, and so on. In Africa today, Nigeria has the biggest parkway and street organize. (Olawale) One of the serious issues of street transportation in Nigeria today is the condition of the majority of the street systems. A portion of the as of late developed street foundations are inadequately worked with low-quality materials. (Olawale) A large portion of the cleared streets have lost their black-top surface and are in a bad way. A portion of the streets have weakened to a rock surfaces. Voyaging is extremely troublesome and some of the time practically outlandish particularly during the raining season because of loads of uneven surfaces, potholes, and disintegrated areas. Some of the roads are covered by water during the raining season because of lack of proper drainage. (Olawale) Street transport represents 90% of both traveler and cargo transport. Because of fast urbanization and overpopulation in real urban communities, the vehicle requests has surpassed the supply and limit of the street systems accessible. What's more, this has prompted consistent and day by day blockage of a large portion of the real systems in Nigeria. (Olawale) This product that TrueGrid produces will make an impact in the Worlds plastic problem. Mack by True Grid will be helping the extreme poverty in countries like Nigeria Africa, helping the environment, and actually recycling the world’s plastics into more useful products. They will be able to rebuild the roads with this new paver, which will be beneficial in there raining season as well where most of the damage occurs. Where do you think the plastics go? In the Ocean? In a Land fill? To another country? There are roughly 300 million tons of plastic in our ocean, and it’s estimated by the year 2050 there will be more plastic than fish in our oceans alone. Country of Choice Nigeria, Africa Nigeria is situated in the western piece of Africa. The outskirts of the nation are imparted to Niger in the north, Cameroon, and Chad in the east, and Benin in the west. The expense of Guinea (in the Atlantic Ocean) is situated in the South. The nation is situated in the tropics and the atmosphere is extremely humid and seasonally damp. The four kinds of atmospheres of the nation are recognizable. Storms that begin in the South Atlantic Ocean impact the atmosphere and the southern piece of the nation encounters overwhelming precipitation. Since the nation is situated in the tropics, the atmosphere conveys the tropical warmth and moistness. The vegetation is for the most part involved by the bogs of the backwoods. The mangrove bogs are additionally situated close to the ocean. The vegetation incorporates backwoods, savannahs, and the montane (biological systems found in the mountains) land. (Geo of Nigeria) There is about 86.9 million Nigerians presently living in poverty, it will end up being the world's third biggest nation by 2050. (Kazeem) By introducing TrueGrid to Nigeria and using it to repair their roads, this will end the dire need for road repair, safer for transportation needs, and improve the environments water table. Due to its durability and over 60 year life span the initial cost is worth the investment. Mode of Entry Market selection choice of the global mix standardization adaptation. Choice of Entry mode factors influence entry decision, why is it important and how? The TrueGrid business located in University of California in Santa Cruz, where it produces a Mack paver. Engineers have developed this product out of recycled materials that help with roads and the environment. Once the product is made and it's ready to be sold, they are ready to be distributed to any location desired, mine being Nigeria. What will impact TrueGrid is the choice of Entry mode to our foreign market? TrueGrid internal factors will have an impact on external factors particular country, region and market of choice will influence their decision. Some conditions related to possible outsourcing of activities are addressed in transaction specific factors TrueGrid prefers the different characteristics of the various entry modes which will also affect their choice. Some factors indicate a move towards internalization or hierarchical modes, intermediate modes, externalization or export modes. TrueGrid has set their eyes on Nigeria Africa, their initial idea is to enter the country by setting up a sales and production subsidiary. The characteristics of hierarchical mode are high setup cost, as the production site carry a large investment, there is a high risk as there is no guarantee that the initial investment will pay off, and low level of flexibility as the large investment will make it difficult to pull the plug on the Nigerian location. As a high-level control TrueGrid would hold on to complete ownership of the value chain activities. In the position to make all decisions about Target groups, distribution channels Etc. The internal factors: TrueGrid is a small company based out of California, and advertises on Amazon. Their resource availability is low and therefore a large investment would be risky, they have no International experience making use of external partners expertise might prove advantageous. Their product is not technically complex and although their product is good TrueGrid doesn't carry a large product differentiation advantage, they have three choices to choose from: Eco, Pro Plus and Mack. An evaluation of TrueGrid internal factors has revealed an indication towards externalization and not towards internalization as TrueGrid initially suggested. TrueGrid has another suggestion, meet Verdant Zeal (African Optimism) who is a Nigerian based agent she would be happy to represent TrueGrid and sell the products to the appropriate businesses in Nigeria. Using Verdant Zeal (African Optimism) would be using a direct export mode. The characteristics of export mode are low-cost as TrueGrid would not need to set up any facilities, start production or hire staff. With this setup of a high level of flexibility the ties to the Nigerian Market will be limited due to government conflict and it would be easy to pull the out if the business was unsuccessful. With a low level of control TrueGrid will have little control of how Verdant Zeal (African Optimism) markets and sells the TrueGrid product. Would she choose appropriate sales channels? Might she favor possible competitors due to a more advantageous commission rate? And will she miss opportunities that TrueGrid would have been able to take advantage of? If they had their own sales staff in Nigeria. Next are the external factors, they address the foreign market of interest, in our case Nigerian market for Road repairs. If we use an agent in Nigeria research shows that social, cultural difference and distance is considerable. This will indicate that having a partner with local knowledge could prove to bridge this gap. TrueGrid has researched the Nigerian market and has concluded that the market is of a decent size and that it’s growing at a moderate pace. Currently there are trade barriers standing in the way of exporting goods to Africa at 5% per raw material. TrueGrid has discovered that the competition is intense, this would add to the level of risk, should they use the hierarchical mode this would indicate a move towards externalization. Research has also shown there are large numbers of mediators available and Verdant Zeal (African Optimism) is one of the many options in this field. It's believed that there is instability in the market, the external factors has also revealed externalization which supports TrueGrid second choice of using an agent. With the transaction specific factors we would determine if it's advantageous and safe to outsource the know-how and product benefits. With TrueGrids products they are not considered difficult to transfer and explain to an independent partner. TrueGrid considered unlikely that an independent partner will show opportunistic behavior, marketing and selling their products and they will not reveal the secret of the formula to their product to that nation of recycled material or the manufacturing process of the design. TrueGrid expresses that they can't afford to be too risky, and no desire to be in complete control of the operation. They see the Nigerian business opportunity as a trial and error set up in their internationalization process. They're very keen on a high level of flexibility to maintain the ability to pull the plug on their business should it be unsuccessful and evaluation of these and other factors has led to externalization which support TrueGrid’s option of using an agent or a direct expert mode.

What are the Distribution Methods: for Product/Market, Pricing, Positioning, and Distribution?

Answer 1

Answer:

The Distribution Methods: for Product/Market, Pricing, Positioning, and Distributionwill be as below

Product /Market: the products will be target for the selected market. The market will be selected based on the opportunity and potential in the market. The TRUEGRID will come out with their plan for the key markets in the global market and they will plan to market their products in these selected global location. So for the product marketing, we will select the suitable product for the individual markets.

Pricing: the pricing will be worked out based on the costing and distribution cost plus the market’s paying capacity. In fact the markets will be selected based on paying capacity in the global market. The pricing will be done as per the region with meeting the costing and earning target profit margin. The pricing will be different in each market regions and it will be market specific.

Positioning: the paver products will be positioned in the target market as per the marketing plan and the locations will be selected based on the strategic locations such that these locations will be helpful in the distribution model and the approach of TRUEGRID of direct expert mode or using an agent approach. The positioning of the products will be carried out in accordance with the distribution strategy and distribution model for the global market.

Distribution: the distribution will be carried out as per distribution strategy of the TRUEGRID business. The TRUEGRID will work out the distribution strategy based on the direct expert mode or agent mode so that they can manage the product security and misleading supplies in the target global markets and it will avoid the optimistic behaviors of the dealer or retailers. The direct agent mode will be used for the distribution model.