EVALUATION OF PINTO WITH 4PS AND ENTRY STRATEGY TO FOREIGN MARKET

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The change has reduced the waste of inputs and introduces technology processes. This expected increase this year by 15% its production, which in 2012 reached more than two million garments. But the activity of Companies Pinto began much earlier in a small tank where today still rotating propellers of a small German turbine 100 kilowatts of power. Thereby supplying lighting energy industry Pinto in Otavalo. In the same place, in 1913, Segundo Miguel and Thomas Abel Pinto opened the first hydroelectric power station, which allowed Otavalo have for the first time electricity. 13 years later, in 1926, the cotton fields of El Chota prompted these entrepreneurs to buy cotton gin machinery and start the textile business. In 1932 the business became what would be one of the first industries in the north.

93-year-old Carlos Cifuentes, has witnessed most of this story. With an assistant, the worker still leisurely dialogue helps oversee the operation of this plant, a job that takes from 72 years ago. "Me, my heart hurts when people say you old textile plant to the first floor because of the factory and the power plant was born what is now Pinto," he recalls retired worker in the 60 Germanic Pinto, who promoted business in the 50s, allowed to keep their jobs. "Doing what I like so far is what keeps me young," says Cifuentes with a smile. "People had previously worked Pinto had looms and raincoats. Then they bought more modern machines." Increasing the Jatunyacu river near which the first floor was located, it flooded throughout. "Sludge Factory is pulled up in trucks." Zulay Romero, who works as a secretary for 47 years at the firm, recalls that the factory stopped more than four months. "Those were hard times. He died a worker. Inputs were lost, some machines were damaged. Therefore, in the 90s, a new plant was built," says Romero. The growing did not stop the growth of the textile industry. Romero witnessed the change of the company with the incorporation of new technologies, especially in the manufacture of fabrics. Pinto initially offered underwear, then basic items and then fashionable clothes were manufactured.

Another challenge was to consolidate the relationship with employees. About 15 years ago the first collective agreement between Pinto and his workers was signed. Today 410 employees belong to this regime. "We've always had a good relationship with the company for the common good. And the company has always given us the opening," says Edwin Peñafiel, vice president of this organization. Julio Fuentes, treasurer of the Chamber of Commerce of Otavalo, says Pinto is one of the leading companies in the canton by the Lafarge cement and textile also Indutexma. "His greatest contribution is in terms of generation of labor and taxes." According to the Mayor Otavalo, in so far this year Pinto has paid USD 40,832 in property taxes, patents and other municipal payments. Although Pinto was internationalized to Peru and Colombia, Ecuador is the main industrial center of this company. In the country 73% of its production is concentrated.

In Peru and Colombia garments with special printing processes are generated, etc., explains Jenny Aguirre, head of Business Talleres Pinto. Cristina Muñoz, Marketing Manager of the company, says that innovation has been another pillar of growth. "Before we had only basic designs. Since 1995 the designs were renewed twice a year. Today each quarter we launched a trend and every month a different collection," says Aguirre. On 18 October the firm next 100 years. To celebrate launch a special collection called "Premium". The sales data. Pinto invoice $ 1.8 million per month. At Christmas multiplies that value by 2.5. (Domestic sales, not including exports). Production. Between 2007 and 2008 it grew 15%. Between 2009 and 2010 it exceeded 24%. For 2013, it is expected to increase by 15% compared to 2012. The export. The production is sold by 68% in Ecuador and the rest abroad, mainly Germany. On 18 October this year the firm celebrates 100 years and will sell his jersey number 17 million to that country.

In 2008 begins its expansion to Peru. Entrepreneurs sought within Latin America countries speak the same language and have similar customs and ways of commercially related.

It pinto entered with production in 2008 to Peru and in 2009 opened the first store in Lima, now has four in the capital, and its plan is to continue opening in the city's stores as it is a market with 9 million inhabitants. In Colombia enters Pasto in 2009, the second store opens in Medellin, and a third also operates in the same city since September 2010.

The Pinto entrepreneur told students that they had to be clear Trade Agreements and Investment Treaty to enter a new market and stick to what these require. "Things like minimum size of a tag can send down an export". He stressed that although we speak the same language, in every country have their words and is a daily learning to new business.

Commercial Manager Pinto bet intermediate cities, since in his opinion are more loyal and better buyers. Among its objectives it is to strengthen the brand Kids Pinto in Colombia and Peru. In Ecuador they have 800 direct employees, 100 in Peru, Colombia and 60. That is why Pinto plan is to expand to other Latin American countries but consolidated into neighboring countries.

Peru and Colombia are considered countries of category B, which maintain similarities in economic situation and political risk.

Strategy

The process of entry into foreign markets is done by taking a series of consecutive and staggered stages: first through exports and only the possession total or partially owned subsidiaries is achieved after a certain period of time.

Internalization mode: Export[pic 3]

Although Pinto is internationalized to Peru and Colombia, Ecuador is the main industrial center of this company. In the country 73% of its production is concentrated. In Peru and Colombia garments are generated only by special printing processes, etc.

Pricing strategy

• Penetration strategy

Due to pinto entering new markets in neighboring countries such as Colombia and Peru strategy is to introduce the product at low prices to induce a maximum number of consumers to try it; maintaining a quality product and innovative

Strategies Export

Pinto exports to its two neighbors countries allowing branch out; to deal with changes