Application of the International Sales Accelerator for sales and distribution strategies of Italian Luxury Brand Manufacturers in the German Market

Abstract

This study investigates the relevance and applicability of the International Sales Accelerator (ISA) method through an analysis of the Italian luxury brand manufacturers’ expansionary process in the German market. The existing literature treats the ISA steps separately without providing a detailed description of what this methodology implies and its applicability. This research provides a deep explanation of the ISA methodology; finds a common pattern in the expansionary process of the investigated brands; analyses the distribution choices of these brands as part of a dynamic and sequential process; and evaluates the existence of pattern matching between the ISA procedure and the process followed by the brands. The findings define a common pattern in the selected brands’ expansionary process. This latter is characterized by a ranking of the main German cities as preferred locations to host the Italian luxury brands’ presence (Berlin; Munich; Hamburg; Düsseldorf; Frankfurt and Cologne) and by a sequential choice of the distribution channels: they firstly enter in the market through wholesalers’ intermediation, secondarily they ensure their presence in the most prestigious department stores, then establish new monobrand stores in illustrious selected locations and further expand through complementary distribution channels (outlet stores, travel retail stores and digital channel). Some exceptions to this pattern, suggest that differences in the firm’s financial resources and brand awareness can affect the path of their expansionary process. The process matching procedure led to partial results, due to lack of data, thus confirming only partially the relevance and applicability of the method to the selected industry.