06 Do you think that $LAND will be successful in other countries? Justify your answer. [6]

[BASEL Moderator]

$LAND sells a wide range of products from food to toys. It has 400 shops in country B. $LAND's marketing strategy is based on penetration pricing. $LAND does no advertising and buys all its products directly from manufacturers. Revenue and profit have increased despite the country being in recession. The Marketing Director wants to expand the business by opening shops in other countries. He believes $LAND will be successful in other countries.

06 Do you think that $LAND will be successful in other countries? Justify your answer. [6]

Possible KN Points:
• Different countries have different tastes
• High set up costs
• Competition/need to attract customers
• Legal/regulations
• Strategy has worked in country B
• Different economic environment
• Communication/language problems