Steve Clark, Willayna Roberts, Derek Laur, Ryan Patton, Alan Yeung

“To Get you through the London Fog!”

CONDOMS IN THE UK

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

IINTRONTRO

Who is Raincoats Inc.?

• Manufacturer of Condoms and other contraceptive aids

• Manufacturer of Condoms and other contraceptive aids

• Established in the United States• Established in the United States

Why are we here ?

• To lay out our entry into the contraceptive market in the United Kingdom.

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

CCOUNTRYOUNTRY I INFONFO

• Population : 59,511,464

• GNP : $1.29 trillion

• Male/Female ratio : 0.97• Male/Female ratio : 0.97

• Population : 59,511,464

• GNP : $1.29 trillion

• 2.4 people per household on average

• 40% of the population are churchgoers• 40% of the population are churchgoers

• 40% under 29 years old

• 2.4 people per household on average

The United Kingdom:

PPURPOSEURPOSE

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

• Current Teen Pregnancy rates (per 1000 women)• Current Teen Pregnancy rates (per 1000 women)• UK : 46.9• France : 20.2• Germany : 16.1• Italy : 12.0

• UK : 46.9• France : 20.2• Germany : 16.1• Italy : 12.0

• Our products can help decrease this problem

GGEOGRAPHYEOGRAPHY

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

TOTAL AREA: 244,820 sq km

(Roughly the size of Oregon)

CCULTUREULTURE

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

• Constitutional Monarchy:• Monarchy serves ceremonial purpose• Parliament,

• House of Lords• House of Commons

• Prime Minister

• Constitutional Monarchy:• Monarchy serves ceremonial purpose• Parliament,

• House of Lords• House of Commons

• Prime Minister

• Low political risk in almost every aspect• Low levels of internal and external conflict• Very favorable socioeconomic conditions• Labour party likely to retain control in

2001

CCULTUREULTURE

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

• Will abide by some rules of the European Union (EU), but no plans to adopt the Euro.

• Will abide by some rules of the European Union (EU), but no plans to adopt the Euro.

• Better than expected economic growth has lead to a raised standard of living.

• Better than expected economic growth has lead to a raised standard of living.

• “Pub Culture” is very important

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

BBUSINESSUSINESS C CUSTOMSUSTOMS

• Very formal business atmosphere.• Very formal business atmosphere.• Sustained personal contact with potential

business partners is expected.• Sustained personal contact with potential

business partners is expected.• Correspondence acknowledged promptly.• Correspondence acknowledged promptly.• Communicate more by letters and fax than

by telephone.• Communicate more by letters and fax than

by telephone.• Less likely to seek legal advice and

guidance.

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

EEXCHANGEXCHANGE R RATESATES

Ten Year 90 - day

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

EECONOMICSCONOMICS

• GDP growth of 1.9%• GDP per capita = $21,800

• 90% of the population above poverty line

• 28 million people in the workforce• 26 million of which are full-time

• R & D spending as a % of GDP = 1.9%

• Ranked #1 for Finance in the Global Competitiveness Report

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

EECONOMICSCONOMICS

• Very technically advanced country• 16,733.3 internet hosts per million people• 282.5 PC’s per 1,000 people

• Very technically advanced country• 16,733.3 internet hosts per million people• 282.5 PC’s per 1,000 people

• No obvious threats in the near economic future

• Growth likely around upper range in 2000 according to Hilfe report

• No obvious threats in the near economic future

• Growth likely around upper range in 2000 according to Hilfe report• Decline in unemployment• Current rate = 4.7%

MMARKETPLACEARKETPLACE

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

• Power Distance Index (PDI)– Low, inequalities among people should be minimized

– High, inequalities among people are both expected and desired

Source: Hofstede, Geert. Cultures and Organizations: Intercultural Cooperation and its Importance for Survival. 1996.

• Individualism Index (IDV)–Low, employees do not just hire an individual, but a person who belongs to an “ingroup” (ie… nepotism)

–High, individuals act according to their own interest and work is organized such that self-interest and employer’s interests coincide

• Power Distance Index (PDI)– Low, inequalities among people should be minimized

– High, inequalities among people are both expected and desired

MMARKETPLACEARKETPLACE

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

Source: Hofstede, Geert. Cultures and Organizations: Intercultural Cooperation and its Importance for Survival. 1996.

• Masculinity Index (MAS)– Low, dominant values are caring for others and

preservation (welfare society)

– High, dominant values are material success and progress (performance society)

• Uncertainty Avoidance (UAI)

– Low, rules are only established as an absolute necessity, low anxiety levels (ie… British queue)

– High, people are comfortable in structured environment with little left to chance

• Masculinity Index (MAS)– Low, dominant values are caring for others and

preservation (welfare society)

– High, dominant values are material success and progress (performance society)

MMARKETPLACEARKETPLACE

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

Source: Hofstede, Geert. Cultures and Organizations: Intercultural Cooperation and its Importance for Survival. 1996.

PDI

UK (35)

Rank #43

Israel (13) USA (40) Arab countries (80)

Malaysia (104)

Rank #1

Low

IDV

USA (91)

Rank #1

UK (89)

Rank #3

Germany (67)Hong Kong (25)

Venezuela (12)

HighLow

High

MMARKETPLACEARKETPLACE

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

Source: Hofstede, Geert. Cultures and Organizations: Intercultural Cooperation and its Importance for Survival. 1996.

MAS

Spain (42)Sweden (5) USA (62) UK (66)

Rank #15

Japan (95)

Rank #1

Low

UAI

Greece (112)

Rank #1

Chile (86)USA (46)UK (35)

Rank #47

Singapore (8)

HighLow

High

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

PPERCEPTUALERCEPTUAL M MAPAP

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

4 P’s4 P’s

Product:• Condoms and other contraceptives

Price:• Competitive pricing• Roughly half a Pound

Promotion:• Displays / promotions in pubs• Tailor current strategy for UK

Place:• Traditional outlets• More urban areas

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

PPORTER’SORTER’S F FIVEIVE F FORCESORCES

New Entrants

Suppliers Buyers

Substitutes

Industry Competitors

- Small- Startup costs are large- Long time for Medical testing

- Small- Will use current supplier network from the US

- Moderate- Condoms are not effectively used- Birth Control w/National Health System is expensive

- Moderate- Not as much variety in the contraceptive market as in the US

Threat ofBargainingPower

Threat ofSubs

BargainingPower

SSTRATEGYTRATEGY

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

• Rely on current supply and distribution knowledge from experience in the US

• Customize marketing campaigns for UK market• Raise awareness of teen pregnancy problem

in general

• Rely on current supply and distribution knowledge from experience in the US

• Customize marketing campaigns for UK market• Raise awareness of teen pregnancy problem

in general

• Concentrate on “pub market”• Concentrate on “pub market”

• Tap into growing internet community

CCONCLUSIONONCLUSION

• Purpose

• Intro

• Geography

• Culture

• Business Customs• Economics

• Marketplace

• Product

• Strategy

• Conclusion

• Perfect time to enter a growing market

• Previous knowledge of the business is crucial to our success

• Competition will be stiff

• Knowledge gained through this expansion could be useful in future expansions where our products are needed.