For the purposes of this term paper it was decided to analyze factors affecting marketing strategy of the European brand "Fairy Dragons" that manufactures souvenirs and toys. The fabulous legend about dragon's family that has magical powers and help people was formulated for the promotion of the brand. The brand name clearly relates to the main heroes of that legend - thereby the brand's mission is much broader than the mission of usual souvenir manufacturers. "Fairy Dragons" has taken on additional psychological meaning for the consumer. The brand is presented in retail places near European must sees visited by the tourist and somehow related to the legend about dragons. Therefore, the target audience consists of two segments: children and visitors of touristic places. Because of the fact that this brand is very specific and created especially for the target auditory, it is rather low involvement product. The basic quality signals for the product are created legend, bright colors of the logo, affordable price, and increased brand loyalty. The product has not entered American market yet, but it is planned to introduce it in nearest future on the basis of advertising and promotion strategy. It should be noted that the advertising campaign aimed at European customers is effective enough, but it is better to build up unique campaign taking into account particular features of the US market. Moreover in order to make the advertising strategy effective, mimicking is unacceptable tool.
Market Segmentation
The volume of American toys and souvenirs market is estimated at approximately 25 billion dollars per year. The sales of various companies operating within the industry have increased by 10% over the last 10 years. Within this period of time the market size varied from $20 billion to $24 billion. At the same time, the market of souvenir products slows down the pace of development, gradually following the path of expanding the boundaries of its influence and quality of corporate reforming. The market is expected to grow gradually within next 5 years, and then it will start to slow down. The toy market is defined as one of the most promising businesses in US. The market is controlled by influential monopolist players such as Mattel Corporation and others. The largest sellers of toys in USA are Wal-Mart, Toys "R" and Target, which, apparently, will continue to strengthen their positions. According to The NPD Group, 54% of toy sales in the United States accounts for large stores. The specialized toy stores took 20% of the market and sales over the Internet amount to 6%.
Nevertheless on basis of right positioning of the product as the result of its unique features, the market is still relatively opened for potential competitors. In contrast to Europe, US have twice bigger volume of the toy market. This fact proves the possible benefits that may be gained by "Fairy Dragons" after entering American market. The tendencies of US toy market are largely determined by tendencies of the world souvenir and toy market. The two main factors of influence are commonly mentioned such as rapid development of electronics and demographic changes. In light of declining birth rates in developed countries and earlier development of children, commercial success of souvenir company depends on the innovations and efficiency of marketing campaigns. The aging population presumes big problem for many toy manufacturers. In order to overcome it the companies try to attract other target groups, i.e. there is a tendency of creating souvenirs and collection toys for adults. Moreover the customers' behavior and their purchase decision are influenced by the overall marketing environment and factors such as personal, cultural, social, and psychological. (Hawkins & Mothersbaugh, 2014) At the same time the US buyers are defined as possessing diverse habits based on multi-cultural reality that leads to easier acceptance of new souvenirs or toys.
Reference groups
The children interested in playing toys associated with legend about dragons, their parents that purchase the products for children and visitors of some historical places present the reference groups influencing the market segment. At the same time in US the market strategy will address mainly to the children and their parents. It should be noted that the advertising campaign should be targeted at children of age under 10 years because of the specific features of the product entering new market.
It should be noted that despite positive factors associated with good psychological acceptance of the product, specific obstacles will slow down the diffusion rate. The rate and extent of the product diffusion within new market directly depends on the following factors such as the intensity of competition, reputation, standardization, delivery infrastructure, and marketing costs. (Hawkins & Mothersbaugh, 2014) American market of souvenirs and toys for children requires that the manufacturer should adjust its production facilities to the commonly accepted standards. These standards are slightly different from the European controlling model. Therefore the high level of standardization is one of the main diffusion inhibitions for this product. Moreover strong existing competitors that achieved significant cost minimization as the result of establishing efficient delivery channels have already acquired large market share. This factor may lead to additional expenditures of "Fairy Dragons" at the initial stage of market entering slowing down the diffusion rate.
The risks invoked by demand uncertainty and necessity of conducting additional marketing surveys in order to protect the company from unexpected loses will increase the diffusion period. At the same time, the positive factors such as economy of scale, high level of staff competence, significant financial resources of the European company will serve as determinants of more rapid diffusion. Keeping in mind the factors mentioned above, it is necessary to note that the strategized period of product diffusion is approximately 1 year.
Diffusion Enhancement Strategy
It is important to point out the key features of the product that may be presented to the target auditory in process of advertising campaign. The products manufactured by "Fairy Dragons" are associated with specific brand attributes. The promotion campaign shall focus on a set of external characteristics, functional and emotional associations related to "Fairy Dragons" that the consumer knows, remembers and perceives. Applying experience of the advertising campaign aimed at European customers, it is important to emphasize that every child may become involved to the fairy world of dragons playing with the product. The safety of the souvenirs is another important characteristic that will positively influence the acceptance of the product by parents.
The diffusion enhancement strategy shall include the following components. (Hawkins & Mothersbaugh, 2014) The point of sale is important communication channel to develop brand-customer relations. The retail points are places where the consumer comes into direct physical contact with the product and makes the final decision about purchasing it. Each store of "Fairy Dragons" shall be decorated in corporate style. It shall present branded stands for more prominent placement of products, the booklet-catalogue of trinkets, unique selling propositions, performance options, application instructions, contact information, and exclusive packaging. The rightly implemented design of stores will allow increasing brand awareness and sales fostering product diffusion. The organization of contests for American children is another important tool enhancing product diffusion.
Taking into account the power of competitors it is clear that the preventive advertising campaign is not the best model for promotion of the product manufactured by "Fairy Dragons". Preventive campaigns focus on regulating security needs and depend on the actions of competitors. It was already mentioned that the financial resources are limited and the impact of existing market players is too high for taking aggressive measures. Moreover, the prevention campaign is aimed at achieving short-term results minimizing lose.
The promotion campaign will serve the needs of the manufacturer in the best way at the stage of initial entering the market helping the company to acquire its particular niche. The dimensions such as time, desired feelings and overall corporate style of the company prove the necessity of launching promotion campaign. The emotions associated with purchasing product based on brand story are expected to occur as the result of promotion campaign. The desire steady stage is to achieve market change by acquiring the space for presenting the product.
Learning is an important part of rediscovering the new product of "Fairy Dragons" by target auditory. Without relevant background of the legend about fairy dragons the customer is likely to show rather low level of loyalty to the product. (Hawkins & Mothersbaugh, 2014, p. 312) The long-term memory and stable associations are the basis of product recognition and its popularity. If the information about product is stored by the customer, the product will become important part of everyday reality of the customer. In order to strengthen knowledge of the target auditory, it is necessary to launch promotion campaign in different social media. The story of fairy dragons should be communicated to the customers by celebrities or heroes of cartons. Even particular carton may be created to promote the legend. The information about positive aspects of the product shall be presented in various sources in order to be better memorized by the customer.
The American lifestyle is characterized by cultural diversity, acceptation of multiple values and significant consumption of the entertainement products. The lack of time to spend time with children results in increased demant for the toys or products aimed at development of the children. It should be noted that an ideal of fairy world has always attracted American customers, therefore the products manufactured by "Fairy Dragons" will fit in the overall lifestyle of the target auditory. Another important need invoked by reality is preferring to buy products that are related to interesting story or legend.
The positive economic and social trends shows the increase of purchases for the products of the toy and sovenier industry. In general specific features of American lifestyle such as pursuit of innovations will result in the nessecity to change the strategy of "Fairy Dragons" applied in Europe adding innovative aspects of the product. It should be noted that the graduate changes in American society towards both spouses working is followed by additional spending on the products for children. Therefore there will be increase in purchaser consumption.
Conclusion
As the result of this research the main aspects of the advertising campaign for the "Fairy Dragons" were determined. The factors affecting marketing strategy such as lifestyle, overall industry trends, market segmentation were thoroughly analyzed. The study of determinents influencing product diffusion such as positive market trends are likely to compensate the difference of controlling requirements in US and Europe. Nevertheless the high level of market competition will slow down the product diffusion. At the same time the efficient promotion campaign will lead to successful entering the market by the company in long-term perspective. The marketing campaign is an effective tool of balancing the market forces influencing the companies operating within the industry.
References
Bristor, J. (2013). The psychology of buyer. Auckland: Economic Press.
Del. I. Hawkins & David L. Mothersbaugh. (2014). Consumer Behavior Building Marketing Strategy (12th ed.). (McGraw Hill, Ed.) London: Public Press.
Statistics on US toy industry. (n.d.). Retrieved from http://www.statista.com/topics/1108/toy-industry
Teen, S. (2015). Changing organizational domains. London: LPP.
