Q1. Does the country market that you recommended for International Marketing Assignment-MAR 8084, match the objectives for the organisation and what is the competitive advantage of choosing that market?
Yes! The country recommended matches the objectives of organisation and it is beneficial for the organisation. India market is best to match with B_E_E brand of New Zealand. Market Objective:- Market objective in India to sell the B_E_E product is 125,000 in year 2013. Financial Objective:- Company has an objective to achieve the 25% growth in market by 2014. Strategic Options:-
In India the company is adopting the Porter’s Generic Strategy which consist the tactics of low cost leadership, Differentiation, Focus. The main thing which makes B_E_E more special is its attractive packaging, creative title on the bag at the same time, uniqueness as compare to other brands in same grounds.
B_E_E also analysed the new markets to attain the option of differentiation strategy for development of new business market using Ansoff matrix. To achieve a goal of growth in Market expansion. As B_E_E has well developed products, entering a new market possesses low risk. The possible ways to approach this strategy is to export the products and have different pricing policies to catch the different groups of customers.
* B_E_E is the only one company in New Zealand which is producing Eco-Friendly products. * B_E_E is a unique in its way of recyclable levelling, packaging of the products. * It is using natural ingredient which are environment and health friendly. * The products are available all over to its customers in supermarkets, stores and online. * The distribution is conducted on a very wide level to make available the products to each and everyone. * B_E_E having experience of different countries markets through which they are familiar with their competitors over there and have enough information to get prepare for competition.
* Products are available for any type of cleaning.
* Through globalisation B_E_E is merging with the all other cleaning products of overseas company. * B_E_E can have high demand in India due to non availability of eco-friendly products.
* B_E_E has bench of experts in their organisation who have knowledge of natural contents, manufacturing, and engineering at the same time, having accomplish knowledge of advertising, public relation and wed designing.
* B_E_E is the only company providing eco-friendly and skin friendly cleaning products India. * India’s top brands like Excel and Tide still having issues about skin problems of the users. * B_E_E’s products are mainly concentrating on green revolution and its competitors products are still out of focus.
Q2. Does the organisation have the ability to meet resources and knowledge needed to conduct a marketing programme in the country market you have chosen?
B_E_E is performing very well in New Zealand and has ability to perform well in India. In India B_E_E just have a survey to provide information to the customers who are looking interested to use eco-friendly products in near future and B_E_E attain good feedback about their most famous products. Besides this, the organisation is preparing itself for having a huge investment in India at presently; B_E_E has very sound financial position with having 35% market share and have Team of experts in every department like in manufacturing natural eco-friendly products, experts in financial budgeting, marketing, and product development management team. Furthermore, B_E_E also has research team to get more information about people’s interest about eco-friendly products to launch products in the different market in world.
Q3. What are all the different market entry strategies available to the organisation? Briefly describe each one?
As we all know India is a developing country and all type market segments are available in Indian market. Of late, in India there are many multinational companies from different countries of world having very sound business in India. Decision for entry in new market is very important and significant decision because company have to select the best one to have an affective and profitable entry in new market. Company have to select one of these
* Foreign investment
* Partnership enterprise
Foreign Investment is direct method to have trade in other country in this a company invest a huge amount of money in selected country. In foreign investment company is going to establish new enterprise own its own in totally new environment. Company have to arrange every single thing like plant, machinery, employees and authorise dealer for marketing the products.
Licensing is lawful act to have trade in any country. It is all about to get permission for having a business trade mark, logo, and name in that particular country. As per India’s Company’s act 1956 every company have to register under this session. Through this all company make sure itself for a unique identity in market.
Exporting is very famous and easy method to have trade with other countries in the world. This term export derives from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an “exporter” who is based in the country of export whereas the overseas based buyer is referred to as an “importer”. In International Trade, “exports” refers to selling goods and services produced in the home country to other markets.
Franchise is an agreement between two legally independent parties which gives a person (the franchisee) the right to market a product/service using the trademark and trade name of another company (the franchisor). Through this agreement the franchisee has the right to market the product/service using the operating methods of the franchisor. The franchisee has the obligation to pay the franchisor fees for these rights and the franchisor the obligation to provide rights and support to the franchisees.
Partnership business is also a good option of international business. If your business will be owned and operated by several individuals, you’ll want to take a look at structuring your business as a partnership. Partnerships come in two varieties: general partnerships and limited partnerships. In a general partnership, the partners manage the company and assume responsibility for the partnership’s debts and other obligations. A limited partnership has both general and limited partners. The general partners own and operate the business and assume liability for the partnership, while the limited partners serve as investors only; they have no control over the company and are not subject to the same liabilities as the general partners. Unless you expect to have many passive investors, limited partnerships are generally not the best choice for a new business because of all the required filings and administrative complexities.
Q4. Rank all the alternative market entry strategies from most compatible for the organisation to least compatible for the organisation, explaining your reasons why in terms of compatibility with the organisations capability to fund the venture, resources needed and fit with marketing objectives?
In light of B_E_E’s strength to do the business in India we can rank the market entry options as:
4. Partnership Business
5. Foreign Direct Investment
Exporting is very most famous way for B_E_E to market their products in India. There are two modes available to export products in India by air and water but to have more comfortable exporting air way is best one. At the same time, India has liberal trade policies for importing products throughout the world.
Franchise is second most famous medium to make available overseas company’s product. In franchise there is one authorise dealer to sell the product in his/her provided area. Franchising is very fast growing business for overseas product. It is run under full control of the owner of the business. Licensing is less favourable than exporting and franchise. In this one very less investment is needed at the time through this one a product of B_E_E deliver very fast than other sources. In this one only licensor has right to sell the product of company.
Partnership Business comes on number 4th as per B_E_E business scenario. In this one company have business in overseas through a partner. The business runs under a partnership deed partner’s share in business, duties, authority level, profit ratio each and every thing is predetermine in partnership deed. It is less favourable because company’s partner may become competitor in future besides this, there is huge investment and risk involves.
Foreign Direct Investment is most risky and involves huge investment in other country. B_E_E take it as last way to get an entry in overseas market. In foreign investment company have to establish its own business in new market circumstances. Country’s trade cycle, economic condition, political stability, customer’s trend and competitors each and everything is new for company which lead to great risk.
Q5. Segment the country market using the bases (geographic, demographics, psychographics, and behavioural) to describe the possible segments?
Segmentation helps to select the most potential area for company’s business in overseas. Through segmentation company can easily decide location for its business. In this company make a different group of people according to their taste, preference, habit and behaviour. It make easy to plan about different group to predict demand of customer.