International Marketing Strategy - Market Penetration

8/7/2019 International Marketing Strategy - Market Penetration .

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A PRESENTATION ON

GOING GLOBAL

TEAM:SULTANS

OF SWING

GLOBAL BUSINESS


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TEAM: SULTANS OF SWING

SRIKANTA KUMAR GHOSH

SAUMAK SINHA

SHILPA ASHOKKUMAR

SIMRIT MANIHANI

ANKIT MADHOGARIA

MBA INTERNATIONAL BUSINESS SEPT 2009

13TH OCTOBER 2009


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CONTENTS

THE VALUE CURVE

ANSOFFS MATRIX

IMPORTANCE OF R&D

NEED FOR GLOBALISATIION

MARKET DRIVERS

COST DRIVERS


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FACTORS TO BE CONSIDERED BEFORE GOING GLOBAL

IMPACTS OF GOING GLOBAL


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THE VALUE CURVE IS A TOOLTO DIFFERENTIATE THE

VARIOUS SEGMENTS OF

GROWTH IN A GLOBAL

MARKET

THE EVOLUTION INTO MORE

PROFITABLE PRODUCT

SEGMENTS CAN BE CLEARLY

TRACKED

MIGRATION TO DIFFERENT

POINTS IN SUPPLY CHAIN

THE VALUE CURVE


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THE VALUE CURVE


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ANSOFF S Product-Market Growth Matrix

The matrix allows marketers to consider ways to grow the business via existingand/or new products, in existing and/or new markets .This matrix helps

companies decide what course of action should be taken given current

performance.


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4 STRATEGIES OF ANSOFF:

Market penetration (existing markets, existingproducts):

Product development (existing markets,

new products):

Market development (new markets,

existing products):

Diversification (new markets, new products):


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IMPORTANCE OF R&D IN GLOBAL BUSINESS

The phrase research and development (also R and D or, more

often, R&D), according to the Organization for Economic Co-operationand Development, refers to "creative work undertaken on a systematic

basis in order to increase the stock of knowledge, including knowledge

of man, culture and society, and the use of this stock of knowledge to

devise new applications"

New product design and development is more often than not a crucial factor in the

survival of a company.

R&D has a special economic significance

R&D investment generally reflects a government's or organization's willingness toforgo current operations or profit to improve future performance or returns, and its

abilities to conduct research and development.


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NEED FOR GLOBALISATIION

1. MARKET DRIVERS

A. HOMOGENEOUS CUSTOMER NEEDS

B. GLOBAL CUSTOMERS

C. TRANSFERABLE MARKETING

2. COST DRIVERS

A. ECONOMIES OF SCALE AND SCOPE

B. FAVOURABLE LOGISTICS

C. COST OF PRODUCT DEVELOPMENT

3. GOVERNMENTAL DRIVERS

A. FAVOURABLE TRADE POLICIES

B. COMMON REGULATIONS FOR MARKETING WITH THE HOST AND THE FOREIGN

COUNTRIES

4. COMPETITIVE DRIVERS


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MARKET DRIVERS

1. HOMOGENEOUS CUSTOMERS THIS MEANS DIFFERENT CUSTOMERS,DIFFERENT NATIONALITY DIFFERNET

MARKET BUT SAME PRODUCT REQUIREMENTS.

2. GLOBAL CUSTOMERS TWO TYPES: NATIONAL AND MULTINATIONAL NATIONAL CUSTOMERS BUYS PRODUCTS FROM COMPANIES OF DIFFERENT

NATIONALITIES BUT USES SAME IN 1 COUNTRY EX:DEFENCE AGENCIES OF

VARIOUS COUNTRIES

MULTINATIONAL GLOBAL CUSTOMERS BUYS PRODUCTS AND SERVICES FROM

SUPPLIERS ACROSS THE WORLD AND USES THE SAME GLOBALLY EX:WHO

3. TRANSFERABLE MARKETING ONE BRAND NAME CAN BE USED GLOBALLY AND THIS ENABLES COMPANIES TO

USE 1 BRAND NAME AND DO BUSINESS ACROSS CONTINENTS EX: MCDONALDS


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COST DRIVERS

1. A SINGLE MARKETNOT CAPABLE TO PRIOVIDE HUGE AMOUNT OF MARKETING SCOPE AND

REVENUE

2. FAVOURABLE LOGISTICSFAVOURABLE AND NEW DEVELOPMENTS IN THE TRANSPORTATION INDUSTRIESOVER A PERIOD ALSO PLAYED A KEY ROLE IN HELPING COMPANIES TO EXPANDGLOBALLY.

3. COST OF PRODUCT DEVELOPMENTTHE COST OF DEVELOPING PRODUCTS CAN BE REDUCED IN A SUBSTANTIALMANNER BY DEVELOPING A FEW GLOBAL PRODUCTS RATHER THANDEVELOPING MANY NATIONAL PRODUCTS.


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Overall commitment of entire company

involvement from the executive suite

to customers service so that complete co-operation can be achieved

from all directions.

Frame a business plan to enter global markets

business plan will help to the know the companys status and

goals so that the results can be measured to a certain extent.

Determination of capacity to invest for expansion

Investing capacity depends upon whether we want invest 10%

of the domestic business profits or pay as one can afford.

FACTORS TO CONSIDER BEFORE GOING

GLOBAL


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Follow a pre-planned strategy

preparation of penetrating Into global markets.watchful eye on the ongoing trends.

Creation of Portalhelps in vast communicationthe main aspect is the Language that has to be chosen.English->PRIME language

Deciding a product or service

We cannot be all things to all people so pick on something andstick with it.


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Market research can be done

To know where the product or service has great demand.

Market research can be done by conductingmarket surveys to ascertain the

prime target.

Estimate where to sell products

Estimate specific geographic location For example

selling few units to a customer in Australia or ten 40-foot

Containers on a monthly basis to retail in France. This will

enable us to know how much can one sell in a specific period of time.

Design the product for export

Packaging plays a main role as it gives an identity to the

Company and makes it best in its class and the product can be

sold anywhere in the world.


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Hire professionals to ease the work load

ex. Lawyer, banker, knowledgeable accountant,and a seasonal transport specialist for international transactions.

Price Initial quoting of product price

customer react ion to the initialprice and then negotiate.

Finance aspects and terms & conditions

Ex. Never sell on open account to new customers.

Post-sales relationship and Enjoying thejourney


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POSITIVE IMPACTS OF GOING GLOBAL

LIBERALISATION OF TRADE AND FINANCERelaxation of government rules and regulations in order to

promote free flow of goods from one place to another.

WIDER MARKET

Globalization widens the market and increases its size.Companies dont have to rely on the demand, tastes and

preferences of a single country.

POTENTIAL UNTAPPED MARKETS

Going global provide a chance to explore and exploit the

potential markets.

These markets provide an opportunity of selling the

product at higher price than in domestic markets.


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ECONOMIC GROWTH OF THE WORLD

Globalization has lead to specialization, division of labor,

enhancement of productivity etc. which in turn lead to

overall economic growth of the world.

HIGH LIVING STANDARDS

Comparative cost theory indicates that the countries whichhave the advantage of raw materials, human resources,

natural resources and climatic conditions in producing

particular goods can produce the goods at low cost and of

high quality.

Enhanced the living standards of people through

consumption of high quality products.

Enhanced purchasing power is given to the customers.


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OPTIMUM UTILISATION OF WORLD RESOURCES

Globalization provides flow of raw materials, natural

resources and human resources from the countries wherethey are in excess supply to those countries which are in

short supply or need most.

DIVISION OF LABOUR AND SPECIALISATIONGlobalization leads to division of labor and specialization.

Example: Brazil specializes in coffee, Kenya in tea, Japan in

automobiles and electronics, India in textile garments etc.

REDUCED RISKSBoth commercial and political risks are reduced for the

companies engaged in global business due to spread in

different countries.


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NEGATIVE IMPACTS OF GLOBALIZATION

HUGE FOREIGN INDEBTEDNESSDeveloping countries with less purchasing power are lured

into a debt trap due to the operations of MNCS in these

countries.

Example: Mexico, Brazil, Kenya, Indonesia etc.

TARIFFS, QUOTAS AND TRADE BARRIERSGovernments of various countries impose tariff, import

and export quotas and trade barriers in order to protect

domestic business.

CORRUPTIONThe higher bribe rates and kick backs discouraged the

foreign investors to expand their operations.


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TECHNOLOGICAL PIRATING

Copying the original technology, producing imitative

products, imitating other areas of business.

HIGH COST

Market surveys, product improvement, qualityup gradation, managerial efficiency etc. require large investments and

involve higher cost and risk.


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CLOSING THOUGHTS:SUMUP

Going Global is not about ending one chapter and

beginning another but its all about continuing with

the other chapter but always referencing to the first

one


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mills


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Industrial life cycle


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GoingGlobal is not about achievement, its about learning

and growth, and developing qualities like compassion,

patience, remarkable openness to new ideas, joy and so

forth within different countries. And if so that is the case,

then I think our goals should include something which

stretches us

Thank You one and all!!

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International Marketing Strategy - Market Penetration