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Entering Us Markets for Italian Manufacturers

In: Business and Management

Submitted By laurakolbe
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Entering the US Market- American Business Perspectives for Italian Manufacturers to Consider _ Part 1

By Laura Kolbe

An investigation of 183 countries in 2010 by the International Bank for Reconstruction and Development reported that the United States is the 4th easiest country to do business in out of 183 countries. Italy is 78th, France 31s and Germany is 25th..

There are Italian products that are selling in more difficult markets than the U.S., which are not in U.S. Other Italian products are in the U.S. but are not maximizing their potential. For example Lambrusco and Parmigiana Reggiana have not been ideally positioned in the U.S. Lambrusco is sold with a screw-on bottle cap restricting its potential sales. Parmigiana cheese’s U.S. positioning does not maximize consumer awareness of the product’s uses.

I advise companies who are entering new markets that it is not enough to have a quality product and know its success strategies in its existing markets. You must also know the other side of the story. That is, you also need reliable information of your new market to realize whether there is opportunity for your product and to achieve profitable product adaptation/positioning. To truly know the other side of the story sometimes you have to talk to the natives!

Why did it take an U.S. entrepreneur to visit Italy, observe the coffee shop ritual and turn it into Starbucks; a U.S. $9,774.6 million company? The answer is market knowledge of both existing market and new target markets.

An example of how good new market information and positioning can triumph even in the face of strong competition is the success of Timberland Shoes, a struggling U.S. shoe manufacturer who decided to export to Italy despite the challenges of the highly competitive shoe industry in Italy. Starting with its Italian success, Timberland then grew from a…...

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