PK Electrics was established in 1987 in Ningbo, Zhejiang province, china. Over the years it has grown from a local supplier producing a limited range of electrical supplies including: cables, sockets, switches and light fittings and currently operating three factories all based in Zhejiang province. Over the last four years the organization has embarked on its first consumer based marketing campaigns, involving the use of consumer advertising and promotion and the collection of consumer and trade feedback. PK’s products are selectively distributed using specialist electrical retailers, department stores and more recently DIY outlets. Over the years the organization has developed a good reputation for quality and customer service
The information on this report by some of the many kinds of books and magazines. However, most of the information received research the Internet, and asked the students, teachers and experts.
3. Reasons of market entry
In the past it was unusual for companies to consider international trade if their home market was large, growing and presenting endless opportunities. The home market is after all much safer; there are no new languages to learn, no foreign currencies to deal in, no political uncertainties to contend with and no pressures to adapt products to suit different customer tastes.
But, With rising economic growth and the rising disposable incomes, especially of the urban population PK Electrics has seen demand for its products grow as people seek improvements to their and living standards. (1) The home market is faced with significant risk. Home market saturation (2) Competition may be less intense in international markets. (3) Globalization is an unstoppable trend in the world
So if the company want more profit, expand the oversea market is a good choose.
4. Information source
When considering entering new international markets. The effectiveness of the strategy will depend on how much, how relevant and how good the information on the potential markets is and how well the company interprets and acts upon it.
Managers must decide what needs to be done, who is to do it, ensure that it is done, and evaluate the success with which it was done. None of these functions can be performed without the necessary information. But al information may not be helpful, so international marketing managers must pay great attention to the quality, quantity and relevance of the information that they seek. Companies can use two key sources of information:
* Primary- this is information gathered first hand by the organization for a specific purpose. * Secondary-This is information that already exists. The information should always be checked first as it is readily accessible and saves time and effort being used in collecting primary information.
5. Opportunities and threats are face.
5.1 Legal factors
A country’s legal system determines the rules that govern the conduct of business in that country as well as the standards that products and services have to meet.Because there is, at present, no international business law system, international marketers must consider the consequences of different rules. 5.2 Technical factors
Managers of internationally operating companies need to be attuned to differences between the technological environment of their home country and those of their various country markets. A lack of technological resources may make it difficult to sell the marketer’s product and to satisfy the customer. 5.3 socio-cultural factors
Culture may be defined as the standards or beliefs, perception, evaluation and behavior shared by the members of a social group. Some authors even define culture as the collective programming of the minds’ that distinguishes the members of one group of people from another
6. The process of enter market
Stage 1: Secondary research: collect information from a variety of reliable sources. At this stage such techniques as PEST or PLEPT analysis can be used. Stage 2: Screen the collected information using set criteria, e.g. As in the Business Environmental Risk Intelligence (BERL) index Stage 3: Select top-scoring countries.
Stage 4: Apply secondary screening criteria using data from markets and the business, e.g. Market attractiveness/competitive advantage (GE matrix). Stage 5: Select best country (ies) to enter. Stage 6: Prepare an international marketing plan/strategy
7. Introduction of available entry modes
In deciding on the choice of international market entry mode, companies need to consider carefully each mode in terms of a number of dimensions. in examining a company’s internationalization process, therefore, it might be useful for you to consider very carefully the entry mode selected for each of its international markets, including how these have evolved over time. Such changes may reflect the company’s changing situation and the nature of the remote and competitive environments.
8. Mode selection of PK Electrics
There are a variety of ways in which organizations can enter foreign markets. The three main ways are by direct or indirect export or production in a foreign country. Exporting is the most traditional and well established form of operating in foreign markets. The advantages of exporting are (1) manufacturing is home based thus, it is less risky than overseas based. And (2) reduces the potential risks of operating overseas. However, export, trade barriers and tariffs, this process can absolutely increase costs, transportation costs. So, exporting would be most appropriate for PK Electrics.
International Marketing: An introduction.