FORTRON INTERNATIONAL INC

September 26, 2023

Changqi Li
Student number 400360978
COMMERCE 3MC3 C09

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 Table of Contents

Title page ----------------------------------------------------------------------------------------------- page 1

Table of Contents ------------------------------------------------------------------------------------- page 2

Introduction and Problem -------------------------------------------------------------------------- page 3

Identification ------------------------------------------------------------------------------------------ page 3

Marketing Audit -------------------------------------------------------------------------------------- page 4

Internal Analysis --------------------------------------------------------------------------------- Page 4 - 5

External Analysis --------------------------------------------------------------------------------- Page 5 - 6

Alternative Strategies ---------------------------------------------------------------------------- Page 6 - 7

Recommended Strategy ----------------------------------------------------------------------------- Page 8

Implementation Plan ---------------------------------------------------------------------------- Page 8 - 9

Bibliography ----------------------------------------------------------------------------------------- Page 10

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Introduction and Problem
Fortron International Inc. is producing the Fox 40 whistle which doesn't have pea and have
better performance. The company had sales agency agreements with Allzweck-Sportartikel, a
German wholesale catalog store specializing in soccer equipment, but it will expire in October
2015. Fortron's Manager, Steve Foxcroft believed that there still has large potential market in the
German and European Union. This case is exploring the options for expanding Fortron's presence
in Germany and the European Union.
The main problems needed to be face:
• The expending of German market -- Fortron needs to decide to continue its relationship
with Allzweck-Sportartikel or use other ways to better sale their whistle in German
market after agreement expire.
• Property Rights -- the patent for the Fox 40 whistle will expire in three years, Fortron
needs to consider the loss of property rights and the impact.
• Competition -- Fortron has the competition from traditional low price "pea" whistles and
whistle manufacturer in UK (ACME Whistles).
• Potential markets -- Fortron need to explore the potential markets in safety area,
education area and fashion area to expand sales.
• Production Center -- Forton should consider if establishing a production center by
themselves or joint venture in Germany is reasonable. Company should consider after
how many years sales could break even the fees use to build the factory and is it
reasonable.
• Marketing strategies -- Fortron need develop some new marketing strategies to attract
more potential consumers. The company should know the local culture and need of the
consumers.

Identification
Perceived opportunity by the company:
Fortron sees the large potential market in German sports area, and the company also can explore
other market segments like safety, education, and fashion area. The company sees the potential for
significant growth in sales and market share of German market.
Additional opportunity:
Company could develop innovative product features, change marketing strategies to maintain
the advantage at the end period of the Fox 40 whistle’s patent. Company also could understand
the background of the culture and preference about German consumers and change or make the
marketing strategies which are more suitable to attract German consumers. Another opportunity
is expansion within the EU market using the advantage of the single market after the Fortron has
the enough influence.

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Marketing Audit
Target market:
Fortron’s target market for Fox 40 whistles are people who always do sports and sports fans
like athletes, coaches, referees, and sporting event organizers. To be specific, it has been selling its
whistles to Allzweck-Sportartikel, a German wholesale catalogue store specializing in soccer
equipment which mean it focus on the soccer. So, the target consumers in German may include
soccer players, coaches, referees, and sporting event organizers.
Marketing mix (four P's):
• Product -- Fortron’s product is the Fox 40 whistle which is a pea-less whistle with the
three air chambers that produce a loud and penetrating sound. The product is also known
for its reliability, ability to work in all weather conditions, and its use in various sports,
including soccer, football, hockey, and basketball. It has different types and colors for
consumers.
• Price -- The case said that Fortron sold the Fox 40 whistles to Allzweck-Sportartikel for
$3.45 each. The suggested distributor selling price is $5.95, with a suggested retail price
of $9.95 per whistle. The Fox 40 whistle use the price premium strategy which mean it
has relatively higher price than other traditional whistles and company has enough
confidence for their products. (Jim Woodruff, 2019)
• Place -- Fortron's distribution strategy in the German market has been through an
exclusive distribution agreement with Allzweck-Sportartikel who distributor specializes
in soccer equipment and reaches its target consumers from important sporting goods trade
shows (ISPO) in Munich. Fortron via this distributor to reach the retailers and customers
in Germany.
• Promotion -- Fox 40 whistle has been used in various international sports events,
including the Pan American Games, Olympics, football leagues, basketball leagues, and
the soccer World Cup. Fortron could use these high-focus events to promotion its
products and build brand awareness. Fortron also could sign a contract with some famous
sports celebrities who has large influence on promotion the whistles.

Internal Analysis
Strengths:
• Unique product -- Fortron's Fox 40 whistle is unique which design as pea-less whistle with
three air chambers that produce a loud, piercing sound. This product has the patent
protection, and the competitors are hard to produce the similar whistle.
• Reliability -- Fox 40 whistle has ability to work in all weather conditions and float on water
and not influence by water which let this product has higher reliability and practicability than
other whistle.
• Widely range of use -- Fox 40 whistle could not only widely use of sports, such as soccer,
football, basketball, and so on, but also it has potential of becoming a very fashionable and
safety-oriented accessory item which could use in safety, education, and fashion area.

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• Profitability -- in the case, Fortron reported revenues exceeding $30 million and profits
crossing the $3 million mark in 2015. Then, the company also used the price premium
strategy which help the company get more profits. (Jim Woodruff, 2019) These shows the
highly continue profitability that the company has.
• High influence users -- The Fox 40 whistle has been used by various professional sports
leagues and organizations, such as the NFL, NHL, NBA, FIFA, NACC, WBL and so on.
This high influence users could prove the quality and reliability of the whistle. On the other
hand, it built the good brand image to attract more consumers and let consumers awareness
the brand. (Aashish Pahwa, 2022)
Weaknesses:
• Size of organization -- Fortron operates with a lean organizational structure which only has
three executives and one secretarial assistant. The small team in the international business
may lack of control of the manufacturing management and the company management.
• Single product -- Fortron focuses on the production of the Fox 40 pea-less whistle. This
makes the market for company relatively narrow, and when the property right of Fox 40
whistle expire after the three years, Fortron needs to face the potential risks like decrease
share of the market.
• Limited knowledge -- Fortron has the limited knowledge about the culture and the preference
of German consumers. This will let the company promotion its product in a very low
efficiency way and may not achieve the expected effect.
Summary:
To sum up, Fortron International Inc. shows several strengths, including their unique product,
high reliability, widely range of use, excellent profitability, and high influence users. But the
company need to face the weaknesses such as the small size of the organization, single product,
and the limited knowledge about Germany. Totally, Fortron International Inc is a strong company
with the large potential to expanding in various area.

External Analysis
Opportunities:
• Large sports market -- German sports market is very large, it has approximately 28% of
the population participating in sports in 2015. This shows an opportunity for Fortron to
expand their product in many other sports not only in the soccer which could help
company attract more potential consumers.
• Expanding in EU -- Germany is a member of EU, Fortron could see Germany as a
springboard to build higher influence and recognition in order to better join into the
market of other counties of the EU.
• Foreign plant -- Fortron could built a foreign plant with the cost of $2.5 million or joint
venture with a foreign firm. Joint venture could cut in half the $2.5 million investment for
Fortron and reduce the risks, but the benefit also will be reduced. The foreign plant could
reduce the time of shipment and reduce the cost in the customs duties to get more profits.

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 • Multipurpose -- Fox 40 whistle have loud, and penetrating sound. The whistle also could
use in any weather and conditions which makes it become a good choice for emergency
signaling. In nowadays, the potential attacks or emergencies could treat Fox 40 whistle as
a safety tool which is a large opportunity with large market. Fox 40 whistle also could
use for education and fashion, but the competitive power in these areas is not as big as
safety area.
Threats:
• Low price whistles -- the traditional pea whistles have the lower prices. This is a treat
in the high price-sensitive market like whistle use for children, consumers may
choose the low-price whistles.
• Imitation -- Another whistle company in UK called ACME is also a treat who is
attempting to develop its own line of pea-less whistles. When the property right of
Fox 40 expire or ACME developed their own pea-less whistle before the property
right expire the share of the market will decrease and the price of the pea-less whistle
will not control by the Fortron.
• Market saturation -- cause the high reliability of Fox 40 whistle and its long service
life. This will let some markets maybe saturation which mean the volume of product
in the market has been maximized after few years, and the needs will decrease which
may reduce the benefits. (Marshall Hargrave, 2021)
Summary:
Overall, the external analysis shows both opportunities and the threats for Fortron International
Inc. To be precise, there are opportunities in large sports market, expanding in the EU, built foreign
plant, and the multipurpose of the Fox 40. The company also need to deal with threats from low
price whistles, imitation, and market saturation. To sum up, there are more opportunities for
Fortron in the environment than threats.

Alternative Strategies
Alternative strategy 1: Get into the safety and emergency markets.
Fortron should rebranding the Fox 40 whistle as a safety and signaling tool for various
emergency situations, such as accidents, natural disasters, and so on which could help Fortron get
into the safety market. The marketing mix could emphasize its reliability in all weather and its
loud, clear sound which could let people awareness the dangerous or make people attention easily.
Pros:
Market share will increase in safety market cause treat the whistle as a safety tool could attract
new potential consumers who concerned about the safety. This also let the company reduces the
dependence on the sports market and increase the revenues from opportunities in safety and
emergency markets.
Cons:
The safety and emergency market may already have the competitors who is very mature in this
area which will make Fortron hard to join the safety market and get large market shares. On the

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other hand, Fortron join the safety market may decrease Fortron's brand image as professional
sports whistle brand which may let it loss some consumers in sports market.
Alternative strategy 2: Find the partnership in the EU for better expansion.
Fortron could enter a partnership with a European distributor or other sports area equipment
retailer to let Fortron get the EU’s market share and expansion to other member countries in EU.
This partnership can increase the Fox 40 whistle's influence in EU countries and could help to
promotion the product. Then, they also could joint venture with the partnership company to build
the plant at EU, if they could make successful in expansion in EU market with a good corporation
experience.
Pros:
Use the influence of the partnership in EU entry to the EU market faster and more easily with
relatively less ricks in expansion. On the other hand, the partnership has the knowledge about the
local culture and local consumers’ preferences which could help the company get this important
information and promotion product easily. Both of pros could let Fortron expansion in EU more
smoothly.
Cons:
The partnership company will share the profits and the benefits which will reduce the income
for Fortron. The good partnership company is also hard to find which will influence the Fortron’s
profits, benefits and the successful of expansion plan in EU directly. In the future, Fortron may
dependence on this partner for the EU market which is not a good thing.
Alternative strategy 3: Strengthen the relationship with German distributor Allzweck-
Sportartikel.
Fortron could focus on strengthen the relationship with nowadays distributor Allzweck-
Sportartikel. Fortron could make the new agreement about the distribution with Allzweck-
Sportartikel to closely corporation and expand market. Then, Fortron could give Allzweck-
Sportartikel some support in marketing which will increase the sales, increase the product’s
popularity, and benefit both.
Pros:
Strengthen the partnership with Allzweck is a relatively low-cost way to improve sales in the
German market, and it also need less time because they have some corporation experiences with
each other. This strategy let Fortron focus on its product in sports area which could help Fortron
enhance the brand image in sports and built the consumer loyalty.
Cons:
Fortron may have the limited control in marketing and sales strategies, and sometimes only
depends on one distributor may have risks which will reduce the sales. On the other hand, the
market saturation of Allzweck may already exist in some part of Germany with these years
corporation.

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Recommended Strategy

Alternative strategy 1: Get into the safety and emergency markets.

I suggest using the Alternative strategy 1 because it very accord with Fortron's core strengths,
Fox 40 could produce loud, clear sounds which meet the need for safety and emergency market.
On the other side, this alternative strategy also deals with some weaknesses, the Fortron do not
need to improve the new product but also could widely its market. And this strategy takes
advantage to make use of existing opportunities, the multipurpose of the Fox 40 and use this
opportunity to attract new consumers. At the same time, it also reduces the threats like the market
saturation, Fortron can reduce its dependence on the sports market which may be saturated.

Rejected strategies
Alternative strategy 2: Find the partnership in the EU for better expansion.
The reasons I reject alternative strategy 2 are it may a long-term strategy, but it may require a
lot of time and effort to find the right partner, and dependency on the partner will reducing Fortron's
control of product.
Alternative strategy 3: Strengthen the relationship with German distributor Allzweck-
Sportartikel.
The reasons I reject alternative strategy 3 are it doesn't deal with the weakness about Fortron
too much dependence on the single product and relatively narrow market. This strategy may
provide short-term benefits, but it can’t help Fortron for long-term sustainability.

Implementation Plan

Product Repositioning (Month 1): Change the Fox 40 whistle's branding, marketing orientation

and packaging to show its reliability in all weather conditions and its effectiveness as a safety tool

for emergency situations.

Market Research (Month 2): Do the deeply market research to identify specific needs in the

safety and emergency markets in order to let Fox 40 go it specific potential market.

Select target market (Month 3): Find the target markets of the safety and emergency sectors

based on market research.

Marketing mix (Month 4 - Month 5): Develop the new marketing strategy for the repositioning

Fox 40 whistle which should include pricing, promotion, market position, and product function for

the safety and emergency markets.

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Marketing activities (Month 6 - Month 8): Carry out the multi-channel marketing activities,

such as online and offline advertising, and trade shows with safety organizations to enhance the

awareness and recognition of the product.

Monitoring and evaluation (Month 9 - Month14): Continuously monitor customer feedback,

sales performance, and market performance. Using these data to measure the success of the

product’s get into the safety and emergency market. Changing the marketing strategies based on

the results and find out the most suitable strategies for product base on evaluation.

Market Expansion (Month 15 - ): If get into the safety and emergency markets successful,

company could expand into other EU’s markets about safety products to further company’s long-

term sustainability.

Resource and Budgeting: Allocate enough money support and resources to each step of the action

plan, and give clearly budgets for the marketing activities, distribution, repositioning and

expansion of the product.

Reporting: meetings at end of each step to report the progress of the action plan to the executives

and find out what should change or improve.

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 Bibliography
Jim Woodruff. (2019, February 6). What is Premium Pricing Strategy? Chron. Retrieved
September 27, 2023, from
https://smallbusiness.chron.com/premium-pricing-strategy-1107.html
Aashish Pahwa. (2022, February 28). What is Brand Image? Feedough.com. Retrieved
September 27, 2023, from
https://www.feedough.com/brand-image-explanation-examples/
Marshall Hargrave. (2021, May 28). What Is Market Saturation? Investopedia. Retrieved
September 28, 2023, from
https://www.investopedia.com/terms/m/marketsaturation.asp

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