Kontrapunkt is the largest branding and design company in Scandinavia. Kontrapunkt showed an interest in the US market for a number of reasons; the customers demanded a more globally oriented product, Kontrapunkt wished to work with large global brands - most of them headquartered in the US - and there were limited growth options in Denmark owing to small budgets for design and marketing among Danish clients.
Kontrapunkt and the US
By that time Kontrapunkt had already completed a few jobs on the US market. The jobs, that were stand alone, were carried out for Hythiam, a company based in Los Angeles and for Microsoft Dynamics. Furthermore, Novo Nordisk, who was one of Kontrapunkt’s most important customers, considered the US market as one of its most important markets. However, none of these circumstances had led to a permanent establishment on the US market. As a result, Kontrapunkt wished to learn what it takes to enter the US market and subsequently to build an organization that could put an international strategy into effect. This strategy should have the overall objective of serving Danish clients internationally as well as serving international clients in their domestic market.
The Assignments
In order to develop the optimal strategy and entry mode, Kontrapunkt wished to investigate the positioning, the market potential, the costs of establishment on the US market and how to prioritize the US market compared to other relevant markets. DIBD provided assistance on a number of different tasks; competitor analysis, a strategy seminar about the US market held in Denmark, a segmentation of the market and meetings with potential customers. In the end DIBD presented conclusions and recommendations to the management of Kontrapunkt.
The Recommendations
The recommendations included amongst other things; to get established in New York, as it is the centre of all branding in the US, to enter into strategic alliances with local consulting and communication offices as well as to focus on companies with a large focus on aesthetics and design in their value offering, and also a high level of quality.
The Result
Kontrapunkt reacted positively towards the recommendations, but they also raised more questions. In order to be able to execute an international strategy it was necessary to make sure that the requisite resources were present in Copenhagen. However, Kontrapunkt did not only show interest in the US market, but also in Japan and Hong Kong that appeared to be promising markets. As a result, Kontrapunkt decided to take one step back, and develop and enhance the qualifications of the organization in Denmark, in order to be better able to manage the international challenge.
In the meantime, Kontrapunkt has carried out a pro-bono job in the US for UN's Global Compact. To be associated with UN's Global Compact is an extremely good reference when wanting to reach US-based Fortune 500 companies that have signed the Global Compact, as well as other UN organizations. As a result, Kontrapunkt gets the opportunity to present its solutions to a large number of CEO's in the US.