Vol. 001 International Negotiation Strategies
HOGARAZULK
Company Profile: The company
Hogares Azul K is a strong company nationally, established in Bogotá, it is a 100% Colombian company, which has a production and distribution base for household cleaning products.
DESCRIPTION OFTHE COMPANY
Mission: To increase our market share in the country and enter other markets that generate greater economic value, positioning our main brands among the top brands with high recall, becoming one of the leading companies in home cleaning products, clothing care and personal care, while manufacturing brands for third parties; being recognized as a socially responsible organization to generate increasing profits and benefits for our shareholders, suppliers, customers, employees, users, community and state.
Vision: To be the national cleaning expert with the presence of our brands in the majority of Colombian homes and to enter new markets
Historical review
The history of Azul K dates back to the early 1940s, more precisely to the back of a warehouse located in the then heart of Bogotá, San Victorino, where one of the most soughtafter products by Bogotá families at the time was manufactured: laundry soap.
Germán Merino Visbal, a visionary businessman from Tolima with extensive experience in coffee exports, saw the potential of this cleaning product and, in 1958, became the sole owner of Azul K.
Thus, this nascent organization began to manufacture laundry soap in “loaves” (or blocks) of blue and white colors that ended up in the washing sinks of hundreds of housewives in the capital. Later, it would launch a veined soap known as “BLUE WHITE”, an example of the innovation that would always accompany the company in later years.
JUSTIFICATION FOR ENTERING THE INTERNATIONAL MARKET
The blue k company has a level of quality in the preparation of its products that can be valued in the international market, in addition the strong economic growth that the brand has nationally gives it the opportunity to think about exporting, having the capacity to compete equally with multinationals in Colombia and the expertise to achieve a niche in its target market nationally, gives it high probabilities of entering the foreign market.
Star product
Super Riel bar soap, a blue bar laundry product.
JUSTIFICATION
It is the leading product in the entire large portfolio of products it has, due to its great quality and effectiveness in washing clothes, it has a very competitive price in the market being much cheaper than the king soap of the DERSA company, which despite being very popular nationally has managed to lose its niche in the market due to the great product of Super Riel.
To achieve the internationalization of a winning product like this, it would be important to review the international competitions and achieve a logo that is familiar in the market and manages to captivate customers, who with the cost-benefit of the product manage to change the competitor's product for ours. The logo and the colors will depend on the destination we want to reach.
INTERNATIONAL NEGOTIATION PROPOSAL TARGETMARKET: TEXAS,UNITED STATES
TEXAS, UNITED STATES
Texas has been chosen as the target market for this international negotiation process due to its large Hispanic population, which makes it culturally aligned with Colombian products. Moreover, its strategic location allows easy access to other states, and its well-developed logistics infrastructure ensures efficient distribution.
Choice of Negotiator.
A negotiator with expertise in international trade and extensive knowledge of the cleaning products industry will be selected. Additionally, the negotiator must possess strong intercultural communication skills, as this will be crucial for addressing cultural and regulatory differences effectively, ensuring a successful outcome.
NEGOTIATION PROCESS
Negotiation Strategies
To achieve the desired results, the following strategies will be implemented:
Preparation and Planning:
Comprehensive research on the Texan market will be conducted, focusing on competitor analysis and consumer preferences. Furthermore, identifying local strategic partners, such as distributors, will be a priority.
Building Long-term Relationships: The negotiation will emphasize establishing trust and creating partnerships that are sustainable over time.
Competitive Approach: The negotiation will highlight the product’s affordability and superior quality compared to local and multinational competitors.
Negotiation Phases.
The negotiation process will be divided into distinct phases to ensure clarity and efficiency:
Preparation: This phase includes understanding U.S. import regulations for soaps and developing marketing materials tailored to the Texan audience.
Initiation: Initial contact will be made with distributors, followed by introductory meetings to present the Super Riel product.
Exploration: Key terms, such as pricing, purchase volumes, and logistical arrangements, will be discussed during this phase.
Closing: Agreements with distributors will be formalized, including timelines for deliveries and contract terms.
NEGOTIATION PROCESS
Implementation and Follow-up: Continuous evaluation will ensure that all agreements are executed smoothly, and adjustments will be made as necessary to expand market share.
Tactics for Negotiation.
To strengthen the proposal, specific tactics will be employed:
Mutual Concession Tactic: Offering competitive pricing in exchange for minimum purchase commitments from distributors.
Differentiation Tactic:
Emphasizing Azul K’s environmental commitment and the proven effectiveness of Super Riel as its unique selling points.
Intercultural Considerations:
Given the multicultural nature of Texas, special attention will be given to: Packaging and marketing messages will be available in both English and Spanish to resonate with the diverse population. Protocols of politeness and communication styles will be tailored to meet the expectations of the local business culture.
Protocol in Negotiation:
Maintaining professionalism throughout the negotiation process is essential. For instance, all communications will use formal language. In faceto-face meetings, punctuality and proper business attire will reflect Azul K’s commitment to professionalism.