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Case
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Reference no. 598-017-1
Subject category: Marketing
Authors: Colin Gilligan (Sheffield Hallam University); Latchelar Hristov (Sheffield Hallam University)
Published in: 1998
Length: 20 pages
Data source: Field research

Abstract

This case study focuses upon the entry to the British market of Netto, a Danish-owned supermarket chain. In entering the market, the company pursued a strong price based strategy and in doing this forced other retailers to rethink their strategies. The case can be used to highlight a number of issues including: (1) market entry strategies; (2) the importance of clear targeting and positioning; (3) the need for a clearly differentiated strategy in a crowded and mature market; (4) approaches to the development of a previously underdeveloped part of the market; (5) the importance of redefining the market and/or the bases of competition in order to avoid a head-on confrontation with the established player(s); and (6) the need for the established player (Kwik-Save in this instance) to respond quickly to an attack or run the risk of being forced to reposition.
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Abstract

This case study focuses upon the entry to the British market of Netto, a Danish-owned supermarket chain. In entering the market, the company pursued a strong price based strategy and in doing this forced other retailers to rethink their strategies. The case can be used to highlight a number of issues including: (1) market entry strategies; (2) the importance of clear targeting and positioning; (3) the need for a clearly differentiated strategy in a crowded and mature market; (4) approaches to the development of a previously underdeveloped part of the market; (5) the importance of redefining the market and/or the bases of competition in order to avoid a head-on confrontation with the established player(s); and (6) the need for the established player (Kwik-Save in this instance) to respond quickly to an attack or run the risk of being forced to reposition.

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