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Hi Friends This is supa bouy I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ [email protected]. I will try to assist the best way I can. Cheers to lyf…!!! Supa Bouy
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PREPARATION AND PARTIAL EXECUTION OF EXPORT MARKETING PLAN
DATTATRAYA PRAKASH DANGE MBA (UNI)
ROLL NO. B515
A
PROJECT REPORT
ON
PREPARATION AND PARTIAL EXECUTION OF
EXPORT MARKETING PLAN
FOR RATHI TRANSPOWER PVT. LTD.
SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF
TWO YEARS FULL TIME COURSE MASTER IN BUSSINESS ADMINISTRATION (M.B.A.)
SUBMITTED BY DATTATRAYA P. DANGE
ROLL NO. - B515 (BATCH 2006-07)
BANSILAL RAMNATH AGARWAL CHARITABLE TRUST S
VISHWAKARMA INSTITUTE OF MANAGEMENT S. No. 2/3, Kondhawa Budruk, Pune- 411048
Ph: 020-26932900/26932800 Fax: 020-26932800
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 1
ACKOWLEDGEMENT
I am profoundly grateful to Mr. Rajendra Kshirsagar of Rathi Transpower Pvt.
Ltd. Pune, for so kindly giving me this opportunity of doing my summer internship in
their esteemed organisation. I intensely appreciate his keen and constant interest in my
learning experience, which could not have been more fruitful.
I am also thankful towards all the members of the organisation, who showed their
warmth and co-operation, thereby assisting me to know the entire activity associated with
Export marketing.
I would like to express my immense gratitude towards my guide Dr. Mrs.
Vandana Gote who helped me at every point of time to develop an insight to think in a
more broader and practical sense.
I am also indebted by our director Dr. Sharad Joshi and rest of the faculty, who
laid the foundation of management aspects in me.
Last but not least I thank my friends and colleagues without whom this endeavor
would not have been possible.
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 2
INDEX
1. EXECUTIVE SUMMARY 4 2. COMPANY PROFILE 5 3. OBJECTIVES AND SCOPE 9 4. EXPORT MARKETING PLAN 13 5. DATA ANALYSIS 27 6. WEBSITE 43 7. MARKET INTELLIGENCE 53 8. FINDINGS 57 9. LIMITATIONS 58 10. CONCLUSION 59 11. RECCOMANDATIONS 60 12. BIBILOGRAPHY 62 13. ABBREVATIONS 64
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 3
INDEX OF TABLES
TABLE NO. NAME PAGE NO.
2.1 GROUP STATISTICS 5 5.1 DEVELOPMENT OF INDICATORS EU
ECONOMY (EU 15) 2003-06- YEARLY CHANGES
28
5.2 COMPANY AUDIT 31 5.3 MARKET AUDIT 35 5.4 COUPLING COMPATIBLE AND EQUIVALENT
COUPLING CHART 37
5.5 JAW COUPLING HUBS PRICE ANALYSIS 38 5.6 PRICE LIST OF N-EUPEX (FLENDER /
RATHI) 39
5.7 TECHNICAL COMPARISON BETWEEN RATHI
AND FENNER GEAR COUPLING
40
6.1 CONTENT GOAL MATRIX 45 6.2 EVALUATION CONTENTS 48 6.3 EVALUATION NAVIGATION 49 6.4 EVALUATION COMMUNICATION 50 6.5 EVALUATION USER FRIENDLINESS 50
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 4
1. EXECUTIVE SUMMARY
This summer internship project report contains a brief overview of the
observations and activities performed at Rathi Transpower Pvt. Ltd., Pune.
The main objectives of summer internship were among others to understand the
entire gamut of operations required to be done for foreign market entry, development of
global customer base, retention and increment of export market.
The main aim of the summer project was to prepare Export Marketing Plan
(EMP) with marketing perspective. After the preparation, execution of EMP was started
with special focus provided on website improvement. Market intelligence was carried out
simultaneously to avail data about market in Europe.
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
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2. COMPANY PROFILE
2.1 INTRODUCTION:
The rathi family s industrial roots can be traced back to 1941, when before India s
independence, the famiy set up a textile mill in emerging industrial town of pune, 180
km. south of Bombay port.
In 1947, the group diversified into engineering products, when Rathi Engineering
Works was established. Focus on exports was always priority, and soon the company got
the Export Excellence Award from the Indian government. The inherent quality
emphasis and continuous improvement throughout the company has gained Rathi
transpower the coveted international mark of quality management system ISO 9001 in
1993, one of the first small scale company to achieve this milestone.
Total factory complex area 30,800 sqm
Rathi transpower plant Area 2,900 sqm
City corporate office 1000 sqm
Number of employees 480
Table 2.1 Group statistics
Rathi Transpower Pvt. Ltd. has been a market leader in mechanical transmission
products and engineering solutions for rotating equipments for 35 years and is part of
Rathi group of industries (Pune).
The manufacturing unit is situated at Alandi, 25 km from Pune city and 180 km
from south Mumbai seaport, employing 300 people.
Manufacturing facilities include:
CNC turning and milling.
Gear hobbing and shaper.
Dynamic balancing.
Hydraulic broaching machine.
In-house phosphating plant.
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
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Manufacturing covers comprehensive range of elastomeric, metallic couplings
with or without lubrication. Company s policy is continual development using the latest
technology combined with company s commitment to product excellence enables it to
maintain its position at the fore front in the market. With the help of 22 distributors and
200 dealers, company is able to offer assured solutions to meet customer application
requirement precisely with virtually no limit in torque or speed.
Rathi transpower boasts of an impressive range of inspection and testing facilities,
to ensure that their customer gets highest quality standards product. Their investment in
research and development equipment enables company to continuously upgrade their
products to ensure that the customers get the best products.
Company engineers are eager to help customers by customizing products
according to their specific need by designing the best suitable coupling with the help of
CAD software. Proven service excellence on various applications enables company to
assist in impartial selection of correct type of coupling design from standard or specially
designed one.
2.2MISSION STATEMENT:
We stand committed to continual improvement in Customer Satisfaction by
Timely Delivery of Defect Free Goods with Prompt Service at Minimum cost.
2.3LIST OF SIGNIFICANT CUSTOMERS (EXPORT):
Pay Kel New Zealand
BPD Australia
BIS Australia
Furrow engineering. U.K.
Bibby transmission. U. K.
Emerson power transmission U. S. A.
Paulies Maska Canada
Wenet Pumpen Germany
Apart from these customers company does export products in following countries
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
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U.S.A., Canada, Brazil, Denmark, Sweden, Norway, Finland, U.K., Belgium,
France, Netherlands, Germany, Italy, Spain, Czech republic, Ireland, Egypt, Kenya,
Kuwait, Saudi Arabia, South Africa, South Korea, Thailand, Bangladesh, Nepal, Sri
Lanka, Syria, U.A.E., Qatar, Oman, Turkey, Australia, Fiji, New Zealand, Papua New
Guinea, Singapore, Taiwan, Malaysia, Hong Kong, Indonesia, China.
2.4 LOGO:
Fig. 2.1 LOGO
2.5 ORGANISATION CHART (EXPORT):
The inherent quality emphasis and continuous improvement throughout the company has gained Rathi transpower the coveted international mark of quality management system ISO 9001 in 1993.
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
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Fig. 2.2 EXPORT DEPARTMENT
2.6 LOCATION:
The manufacturing unit is situated at Alandi, 25 km from Pune city and 180 km
from south Mumbai seaport, employing 300 people.
Corporate office is situated at Deccan College Road, Yerwada and 4 km from
Pune railway station.
Overseas branch is situated at Sidney, Australia
2.7 PRODUCT RANGE:
Almost all type of coupling is offered by company, which includes standard as
well as couplings requiring custom treatment. This ability certainly provides company the
cutting edge over competitors. The NICHE of high performance coupling market has
already been explored by company when high performance couplings were developed
EXECUTIVE DIRECTER
HEAD OF EXPORT DEPARTMENT
TRAINEE MANAGER
INBOUND ASSISTANT
OUTBOUND ASSISTANT
MARKETING ENGINEER
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 9
by company. Emerson Power Transmission USA , a fortune 500 company, has honored
company by choosing it as their manufacturing base to make their own coupling brand
KOP Flex . Compared to domestic competitors, performance of product & Brand Image
is superior in Domestic Market.
2.7.1 TRANSMISSION ELEMENTS:
Products of Rathi are technically called as Transmission Elements hence the
name Rathi Transpower . Transmission elements transmit power from driving unit such
as I. C. engine to driven unit like pump.
Flexible couplings smoothens the fluctuations from driving unit to driven unit. At
the same time it allows slight misalignment in alignment, simultaneously absorbing
shocks and vibrations. The flexible component in coupling performs these functions due
to inherent elasticity and ability to resist shear.
When the flexible element used is rubber or polymer it is called as Elastomer
Coupling. In Metallic Coupling flexible element is metal.
2.7.2 PRODUCTS CHART:
ELASTOMER COUPLINGS
SHEAR TYPE COUPLINGS
TYRE FLEX COUPLING
TYRE COUPLING
COMPRESSION TYPE
JAW FLEX COUPLING
B FLEX COUPLING
CONE FLEX COUPLING
HY FLEX COUPLING
METALLIC COUPLINGS
DISC O FLEX COUPLING
D FLEX COUPLING
GEAR FLEX COUPLING
GRID FLEX COUPLING
TRANSMISSION PRODUCTS
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 10
PULLY
KEY BAR
BUSHES
SHIMS
POLY GEAR
CARDON SHAFTS
Company has the honor of providing 100 % coupling coverage for Indian
industry. In case of global market, company provides equivalent couplings of all major
international players.
2.8 COMPETITORS:
Company has already established itself as a market leader in domestic market.
There are no major competitors in domestic market.
Globally, company sees following companies as its competitors.
FENNER
FENNER
DAVID BROWN
RENOLD
WELMAN BIBBY
FLEXIBOX
COUPLING & DRIVES
KTR
DODGE
With regards to quality, Rathi couplings are at par with its GLOBAL Competitors,
leading pumps OEM s around the world approved company as their main source for
Couplings.
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 11
3. OBJECTIVES AND SCOPE OF PROJECT
3.1 TITLE OF PROJECT:
Preparation and partial execution of Export Marketing Plan
3.2 OBJECTIVES:
Primary objective:
To prepare Export Marketing Plan.
Secondary objectives:
To improve company website.
To do market intelligence.
3.3 SCOPE OF THE PROJECT:
Rathi transpower Pvt. Ltd. has been market leader in flexible coupling industry
for decades. Currently they have considerable amount of exports, they are intend to
increase amount of exports still further. For this endeavour Rathi is taking help of a
Dutch management consultancy CBI (Center for Promotion of Imports) . According to
their consultation they have decided to prepare Export Marketing Plan.
Entire export activity is complex, without planning it can result in unfavourable
consequences. EMP will segment export activity in small segments, planning for each
segment at a time is relatively easy.
EMP will replace all the individual oriented activities and make them system
oriented. Loss of one or more individuals will not affect the business as all the activities
are predefined and planned for. In case of expansion of business each new employee is
clear in his mind about all the export activities that are carried out. Each new business
unit or cell will have a basic framework or structure on which exports activities are
carried out.
Export marketing plan is made for entire export activities. Scope of EMP extends
from domestic offices to overseas office. The company is more interested in increasing
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 12
customer base across the Europe. EMP will be very useful for all European Union
market.
EMP is prepared by the middle level managers. Top level management are
expected to give valuable inputs for the preparation of EMP. Final form of EMP must be
approved by the top level management. Once prepared EMP must be followed and
executed by middle level of management. Lower level managers are usually involved
only with partial execution of EMP.
Although EMP is often prepared by the export department executives, directives
of EMP are binding to each department and every person. All the activity of exporting
revolves around the quality of product. As the quality is everybody s responsibility,
exports are dependant on each employee s efforts.
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
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4. EXPORT MARKETING PLAN
Every business works on an explicit or implicit business plan , which comprises
both the corporate and the competitive strategies of the firm. To implement the above two
strategies, there are functional areas, which have their own strategies or plans.
The marketing plan usually follows the marketing strategy. Marketing strategy
can be defined in simple terms as segmentation, target market selection and positioning.
The export marketing plan is more comprehensive in the sense that it does not
restricts itself about formulating strategy. It starts with micro environment analysis then it
proceeds to macro environment analysis. After analysis of all the factors, description of
all the strategy follows. All the strategies are then converted into action plan. At the end,
forecast and budget are prepared.
The export marketing plan acts as a code book for export department personnel.
It chalks out the activities to be done with allocation of resources like time and money for
each activity. Detection of deviation and making necessary corrections also becomes
easy.
4.1 PREPARATION OF EXPORT MARKETING PLAN
The Export Marketing Plan is one of the advanced techniques that can be used
as an effective tool for overseas marketing. However, only those few companies which
are efficient enough to be aware of recent trends in management are able to employ it.
Export Marketing Plan abbreviated as EMP is a comprehensive guide for
prospective exporters in developing countries. EMP specifies the following
Export Objectives
Market Entry Strategy
Management Plan
Financial Plan
Action Plan.
Your plans on exporting will be written down in an Export Marketing Plan
(EMP), your instructions for the use of (human and other) resources and their general
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 14
tasks in your Management Plan, specifying them in a short-term Action Plan, and the use
of financial resources in a Financial Plan.
Fig. 4.1 CONSTITUENTS OF EMP
This systematic planning, step by step, of all activities for exporting gradually
zoom in on the customers and/or end-consumers and on marketing activities to reach
them. One has to put planning - or more precisely: its objectives - on paper, so as to
inform and instruct all interested parties. Ideally such a planning follows a certain
hierarchy: every next step goes more into specific details than the previous one. Time-
wise, this system looks like a funnel.
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
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Fig.
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 16
4.2 PLANNING FUNNEL
4.2 PURPOSE, FUNCTION AND FORM OF AN EXPORT MARKETING PLAN
FIG. 4.3 EMP (OPERATIONAL PART)
4.2.1 The purpose of the Export Marketing Plan (EMP) is:
To bring all relevant marketing instruments together in a productive mix ;
Give direction to all your planned activities for optimal effect. That direction is
outlined in the objectives;
Estimate when the activities should take place. This timing will clarify the logical
sequence. The same applies to the very moment results can be expected. That
facilitates good management and sound decision-making;
Estimate how much the activities are going to cost, in order to make the money
available whenever necessary;
Estimate the feasibility, deducting all costs from the profit to establish if the
results justify those costs.
4.2.2 The function of the plan is:
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 17
To inform all people involved about the objectives of the export operation;
To reach consensus with the key members of the company;
To give them specific instructions as to what their contributions to the export
activities will be;
To provide a certain justification for the money that will be spent in the export
process. This justification is meant to convince the directors and owners of the
company.
4.2.3 The form of the plan is:
The Export Marketing Plan should be in written form (although some advanced Western
exporters incorporate export planning in their computer-driven corporate planning). Parts
of the EMP can - selectively - be distributed within company.
Elements of Export marketing plan
Introduction & mission
The introduction should include a short historic track record, the critical success
factors which have brought the company to its present status and performance
(company s reason of existence) and a brief statement on what company is, what
company does (business concept), why company does it (motivation), when and where
company does it (market and planning horizon), and how company does it (your overall
strategy).
The Mission statement is like a company charter, which should summarise your
company goals, your company added value, and your target market(s).
Current Market Position
It is description of current market position, which is the starting point for future
international market expansion, by using marketing mix.
Product
Elaboration on present product assortment; what products does company sell, what is
their market position, and what competitive alternatives are available in the market?
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
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Place
What is the current market coverage, which distribution channels does company use, and
how does that relate to the competition?
Price
What is the pricing policy, to what extent does company apply different pricing from the
competition, and how does company apply pricing flexibility in order to promote sales
(e.g. discounts, quantity offers, contractual tenders etc.)
Promotion
Describe the promotional tools that company employees i.e. promotional mix
(advertising, trade fair participation, Direct Marketing, e-Marketing etc.).
Market and Industry Trends
Describe the past, present and future developments that take place, are envisioned
to take place, or have taken place in current and potential future markets, including
particular segments: Try to identify workable market segments, and relate these to
consumer behaviour, procurement practices, differences in the distribution system,
regulations, fashion, economic, political and technological developments, innovation, and
of course competitor activity. Company should try to identify the most promising market
(segment), providing concrete business opportunities. One can make use of the market
surveys that are available in the market information database.
Export Audit
Company Audit
The company audit, a self assessment of a company's Strengths and Weaknesses,
shows strong resemblance to the so-called supplier quality assessments as performed by
buyers. A key characteristic of the company audit is that the elements covered are all
controllable by the company management. At this stage, the Strengths and Weaknesses of
the company must be described, related to the expansion strategy. 5-M method can be
used: Men, Means (resources), Methods (management), Machines, Measurables
(marketing impact, customer and employee satisfaction, qualitative certifications) and
audit the company according to the 5Ms.
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One has to take into consideration that in the international markets an increasing
emphasis on quality management requires companies to emphasize process performance
(methods) and has to strive towards continuous performance improvement (measurables).
A company audit should take these issues into consideration!
Market Audit
The market audit is an external analysis of the Opportunities and Threats in the
market. A key characteristic of the market audit is that the aspects covered are market
conditions which are uncontrollable by the company management. At this stage,
opportunities and threats of your current and target export markets must be desribed. One
can make use of the STEEP methodology: Identify opportunities and threats related to
Socio-cultural factors, Technological factors (barriers), Economic factors, Environmental
factors and Political factors related to trade.
SWOT conclusions
In the ideal situation, the findings of the Strengths, Weaknesses,
Opportunities and Threats (SWOT) analysis as carried out as part of the
export audit, will provide numerous opportunities that match with identified
company strengths. However, in reality, the findings will often show several
threats in the market that correspond to weaknesses in the company. The
main challenge here lies in addressing the weaknesses and transforming them
into strengths, while optimising the impact of once strengths to tap identified
market opportunities. One has to remember that a threat is considered a threat
because the company is unable to deal with it. It has an associated weakness.
If the weakness is transformed into strength, the threat will disappear (and
may even become an opportunity).
The identified opportunities and threats should be considered as
drivers for company adaptation and improvement. It is important to realize
that the market conditions can not be changed, and for that matter they
enforce the direction the company should take towards market entry.
Remember that the strengths and weaknesses are controllable whereas the
opportunities and threats are given market conditions.
Competitor Analysis
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Now that company has conducted company s own SWOT analysis, it
should try to identify the main competitors in the target markets. What are
their strengths and weaknesses and their expected strategic moves in relation
to the opportunities and threats.
Remember that the opportunities and threats are not only drivers for
your company performance but will also direct the other players in the
market.
Market Assumptions
Describe the underlying assumptions that may impact on the plan.
Relate these assumptions to for example the economy (slow or fast economic
growth), distribution pattern, product (life cycle) development, technological
and regulatory developments, stability or dynamism in company s target
markets, company s financial situation (e.g. cash flow). The more realistic
assumptions are, the more accurate plan and budgeting can be. If the
assumptions change substantially, the plan (and budget) needs to be adapted.
Export Objectives
Based on the outcome of the audit, one should be able to formulate
sound objectives. These objectives should provide the building blocks for
your company s targets. Therefore they should be SMART: Specific,
Measurable, Achievable, Realistic and Time-bound.
Specific: the product(s) and market(s) should be specified;
Measurable: the objectives should be quantitative, expressed in
terms of sales value, sales growth, market share, number of customers
etc.
Achievable: the objectives should be based on company s
strengths and its critical success factors (the internal potential) and
market opportunities (external potential);
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
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Realistic: do not chop of more than you can chew and that
needed investments will remain in relation with the expected yield;
Time-bound: use a planning horizon to reach goals and limit the
earn-back period.
It is preferable to formulate short term, medium term and long term
objectives.
Market Entry Strategy
Strategy Summary
In the strategy, one has to develop a sense of direction for company.
Based on the conclusions of the export audit and competitor analysis, it will
be possible to develop the strategy to meet the objectives. It is essential to
determine the market (segments), choose the most suitable distribution
channel and select the right trade partner. The appropriate positioning should
offer the competitive edge company needs vis-à-vis the competition, to
outperform them based on customer value.
Markets & Segments
When selecting target markets, company will have to determine market
(segment) to focus and reason behind it. In this respect, consider market size
and in particular market growth, specific segments, particular niches,
developments in customer needs and customer satisfaction, physical and
cultural proximity, and alertness of competitors.
Positioning Strategy
Based on a clear understanding of the customer needs in defined target
markets, company will have to clarify how business offering meets the
perceived customer needs. The resulting product/market mix should include
what company sells, at what price, where company sells and how company
sells it. How does company s product/market mix compared to the
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competitors marketing mix? To what extent and in which areas does
company differentiate from the competition.
Product/market mix should make it clear for customers whether
company is aiming; for the top end of the market, at medium level, or at the
lower end. The positioning based on a blending of perceived and physical
added value, impacts on the choice of distribution channel, product quality
and warranty, business communication and pricing.
Branding Strategy
When it is decided to operate in a foreign market under own brand
name, company will have to realise that substantial investments will be
required. Therefore, it is only advisable to do such if it will lead to higher
revenues, create binding and stimulate repeat purchases, and company s own
brand and company image is appreciated by the trade.
Therefore, alternatives to branding should be considered: most
outsourcing companies in Europe operate under their own brand name or
private label of their downstream buyers, or demand production according to
specifications, with or without licensing agreement.
Product Strategy
How can the product range be developed in accordance with the
customer needs and prevailing market conditions (competition and rules and
regulations) in the target market(s). Can your existing product assortment be
used or does it need adaptation?
Features/benefits analysis
Do products offer features (physical property of the product) or
benefits (usage added value) that add value to the customer? Are there
elements of intrinsic product which are not appreciated by customers? One
has to remember always that product safety, recyclability and user-
friendliness are dominant success factors in the European Union due to
legislation.
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Unique selling proposition of your products
Do products offer unique properties that are an incentive to customers
to buy it? One should try to name at least one USP per marketing P (product,
place, promotion, price) since this will help to formulate sales message.
Product development
It will be discovered that only in exceptional cases product will be
directly acceptable to the market. Therefore product development capability,
in relation to market demands is of crucial importance. Moreover, at a higher
level, not only product development but more so process management
capability is a key issue for success. When company s process reaches
European conformity (including research and development processes), that
will attract customers who will assist in production according to required
specifications. In this respect, consider the importance of compliance and
assurance with management systems (e.g. ISO 9001:2000 for quality
management).
Product packaging
In most cases packaging is one of the product features that needs
market adaptation. Packaging includes all aspects of the package that holds
product and must be practical, convenient and promotional. Issues of
engineering, design, graphics, distribution and marketing enter into
packaging solutions for exports. In the EU three new packaging issues have
emerged: environmental concerns, safety concerns, and what we call
packaging as product . In most cases it is advised to include the trade
partner in the packaging adaptation decisions.
In determining your product portfolio for export, you have to consider
the following critical success factors:
Product life cycle stage
Does product fit in the current life cycle stage in the market?
Product profitability
Does margin justify market entry efforts?
Product seasonality
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Pricing Strategy
In many cases, company will not be able to dictate its own prices.
Information from the market research should give the insight into the
prevailing retail and wholesale prices, appropriate margins and competitor
prices. Some considerations that have to be made when determining a pricing
strategy: Cost, demand, competition, image, segment. Also, one need to
consider what countermeasures competitors may take. Will they strike back?
Will they be forced to defend themselves aggressively? Are they in such a
secure position that they can take long term actions to undermine your
position?
One may choose out of four basic pricing strategies:
Cost-plus pricing:- In cost-plus pricing, one looks at the cost of what
one sells. That is, productions costs and add on the profit need to be made.
Cost plus means Cost plus profit. This strategy is used mostly in opportunity
marketing. The focus is more on selling instead of sustainable long term
marketing.
Competitive pricing:- With competitive pricing is established, own
market price by benchmarking with competitors prices and differentiating
through marketing mix incentives. The result should be a better price
performance ratio than the competitor average.
Penetration pricing:- One can adopt penetration pricing by applying
low margins or even apply marginal costing (in case present sales cover the
contribution to overheads and one still has spare capacity to utilise) and sell
at the lowest price of all the competitors. The focus is on entry and high
volume. A negative aspect is that one will also receive a low quality image
(price fighter) which may hinder upward marketing later on.
(Perceived) Value pricing:- One can adopt value pricing in case there
is no competition (yet) or when the product is perceived as unique or
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superior. The volume may be small, the margins are high, which offers one
the opportunity to lower the price at a later stage and increase volume.
Distribution Strategy:- A proper Place produces profits!
The first decision to make is whether to go direct or indirect to the new
market. Indirect means, that the complete export activities are taken care of
by an exporter or agent or that the complete import activities are taken care
of by an importer or agent.
When you decide to enter the market directly, you should realise that
you should take care of in-market stocks, in-market promotion, in-market
distribution and in-market sales. In such case, it may be very difficult to keep
the investments in relation to the expected yield!
When formulating a distribution strategy, one must ask himself:
What am I selling?
Who are my prospects?
Where are they?
How can I reach them?
How does the distribution channel work?
What does it imply to sell through this channel (trade margins)
How many channels should I use?
When one manages to follow the product flow upstream, from the
front-line (profile of the end consumer) to importer, one will be able to select
the right market entry mode. This mode may include: Exporter, agent,
importer/wholesaler, manufacturer (co-maker / subcontracting), OEM
(original equipment manufacturer), retailer, mail order company, independent
sales representives, Internet sales, or joint marketing agreements as supplier
to a large marketing company.
Promotional Strategy:- Promotion boosts purchases!
Defined narrowly, promotion means ways of creating awareness or inducing
people to buy.
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The promotional mix is a range of techniques, whereby one initiates,
increase and maintain awareness of what one offers to his customers, in the
most cost-effective way. As part of the mix one can use the following
ingredients: Direct Marketing, advertising, trade shows, personal visits, web
advertising, in-store and distribution channel promotion, free publicity,
catalogues and brochures (CD ROMS).
The AIDAS formula helps to remember the 5 key factors that a good
promotional mix must realize:
Get Attention;
Capture Interest;
Create Desire; that
Leads to Action; and
Customer Satisfaction
Management responsibilities
Indicate the management requirements to manage the export fitness
and market entry efforts. Who will be responsible, how will the operations be
guided, which systems will be in place and how will the workload be
divided? Also, how will the export marketing activities, and the resulting
claim on the company's capacities and resources, be balanced (or controlled)
in relation to the domestic marketing efforts? The export venture should by
no means jeopardize the company's position in the domestic market. Consider
critical control points and contingency plans in order to manage the risks of
the international adventure.
Action plan
Develop an action plan for export start-up (or expansion), which is
based on the export audit and competitor analysis (actions needed in order to
become competitive and to tap the opportunities), which supports the
objectives and strategies and that provides detailed actions showing timing
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 27
and costs. Consider a spreadsheet, detailing when key activities start and
finish, and how they dovetail into each other.
Budgets and forecasts
The last, but certainly not least important aspect of the export
marketing plan is of course the financial plan. One should include a section
on financials, demonstrating the effect marketing activities will have on
revenues and profitability. First an export sales forecast should be made up,
covering a period from 1 to 3 years. Based on this forecast, an export revenue
projection should be made, followed by a budget of export expenses. This
will result in the profit and loss projection
of the export venture.
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 28
5. DATA ANALYSIS
As a part of EMP it was necessary to do data analysis. It involved doing the
macro analysis at first. In this part general market conditions of Europe were analysed.
SWOT analysis followed afterwards. In SWOT analysis company audit according to the
given criterions was done to know the Strengths and Weaknesses of the company.
Market audit was done to know the Threats and Opportunities present in the European
market .Lastly competitor analysis was done to asses the ability of Rathi to face the
competition.
It is worth noting that entire work of analysis was done according to the criterions
suggested by CBI, Dutch consultancy. Conventional management concepts were not
used.
5.1 SOURCES OF DATA
Primary data:- Rathi has been assessing itself for years, it has one of the most extensive
database about company. Each department keeps its own database.
Secondary data:- From the past, Rathi has been collecting market intelligence
religiously. It possesses comprehensive intelligence about European market.
CBI website was another source of secondary data. It provided all the directives
for preparing EMP. The articles about European market access requirement, marketing
through website, market conditions across Europe and collecting data from European
market through internet were posted on website.
Some European websites were also used.
5.2 MARKET AND INDUSTRY TRENDS:-
Before doing investment in any kind of market one must have confidence that
there is fair chance of market prospering. To establish such a confidence, economic
indicators can be used as deciding factors.
5.2.1 Industrial Confidence:-
General economic condition influences both consumer and industrial demand as a
consequences influences demand for engineering products. The table given below
displays some main indicators & forecast for the industry as a whole. The indicators
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 29
show cautious recovery & positive trend in investment & industrial trend. This is a good
market signal for exporters from developing countries.
Main Indicators 2003 2004 2005 2006( F )
Private Consumption 1.2 1.6 1.6 2
Government Consumption 1.5 1.8 1.1 1.2
Investment -0.5 2.7 2.6 3.3
Investment in Machine Equipment
-1.1 3.1 2.8 3
Investment in Construction -0.4 2.3 1.8 1.6
Industrial Production 0 3.1 1.3 2.2
Source: Eurofer (July 2005)
TABLE 5.1 DEVELOPMENT OF INDICATORS EU ECONOMY (EU 15) 2003-06-
YEARLY CHANGES (%)
5.2.2 Economic outlook European Union.
The economic growth in Western Europe in 2005 is predicted to recover slowly,
growing at 2% on average. France & Germany are predicted to grow more slowly than in
2004. In 2006, growth is expected to be somewhat higher. Most members are forecast to
grow faster than they will in 2005. The economies in accessed countries Poland (5.7%),
the Czech Republic ( 3.8%) have grown above the EU -15 average. In 2005 they are
predicted to grow about the same rate. This is again a positive sign for DC Exporters.
5.2.3 New EU Members & Opportunities for Exporters from Developing Countries.
Mechanical Engineering Production in Poland is larger than any other new
member. Second is Czech Republic & third is Hungary. Numerous small businesses from
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 30
these countries are serving as workbenches for western European clients. The sector
focuses on standard machines for
Textile and Food processing
Machines for Metal Production,
Mountings & fittings,
Pumps
Tools & conveyors.
Most of the companies have low productivity. They need to invest in
modernisation. Some companies look for foreign partners or investors. These countries
are showing increasing demand for machinery, tools, component and parts.
These countries have major advantage in labour cost compared to EU 15. This
made them an interesting area for EU 15 companies, especially to have manufactured or
processes outsourced. However their advantage is labour cost is disappearing fast and
their salaries increase almost per month. Industry expects that within 3-5 years. EU 10
will be normal competitors for EU 15 member states since the major share of their cost
advantage will have disappeared within that period.
This development offers opportunities for Exporters from developing countries. In
order to remain competitive, companies within EU 10 will have to rely on developing
country supplier. Therefore Czech & Polish manufacturers are exploring the possible
ways to cut costs & outsource some production processes to lower wage countries.
Many investments are planned in the new EU countries. There are plans for
building factories. All this offers goods opportunities for Exporters of engineering
Products from India to focus their attention on Czech Republic, Poland & Hungary.
5.2.4 Trends:-
Slow Changing Trade Patterns:- Use of internet in sourcing the product is
getting accepted slowly despite the fact that personal contact in dealing remains very
important. Engineering Products with relative low technical complexity such as
couplings, V belts and ball bearings are selected via internet auctions. This brings DC
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 31
exporters closer to EU market at relatively at a very low cost. He needs to display his
product on website.
Transformation accession Countries:-
The transformation of Central and Eastern European states into market oriented
economies is beneficial to EU mechanical engineering. A division of labour has arisen
which enables EU firms to utilize a cheap labour supply to improve price competitiveness
in international market. So many west European countries have transferred parts of their
production to Poland, the Czech Republic, Hungary, Slovakia, Slovenia and Romania
The production of standard products & parts are being transferred to these countries.
Here again the exporters from DC countries have cost advantage over accession
countries.
Drives & Transmission Group: This product group is by far largest to be imported by
EU countries (Euro 50.7 Billion) with positive growth in demand. Germany is the largest
importer then come France, UK, Belgium.
Developing Countries such as China (2% share), Turkey (1 % share) & Brazil (1
% share) are exporting to EU Countries in this category.
5.3 Export audit
5.3.1 Company audit:
SWOT analysis of our organization was done. At the same time the Export Audit
Documents was received wherein CBI has given their detail analysis about Rathi
Transpower Pvt Ltd.
Both analyses were combined together to present SWOT Analysis of Rathi
Transpower Pvt. Ltd.
Audit
Category
Strength Weakness Action Plan
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 32
Men
Have Loyal workforce ,
Skilled manpower
Work is routine
oriented. Ageing
workforce
Good Account
Managers.
Means
Sound cash Flow &
have good bank
relations
Methods
Every Dept in the
organization has his own
set of objectives to
follow. Performance of
each Dept is monitored
& reviewed every three
Month in Management
Review meeting.
No professional
market
information
system.
ISO 9001-2000 Quality
System is followed
R & D activities are
strong & have ability to
New product lines. Have
launched high Speed
Performance Coupling
in association with
Bibby Transmission
UK.
Has professional &
organized marketing
team
Production
Production CNC
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 33
Methods are
labour intensive
machines are
being
installed in
phased
manner.
Method
Low Degree of
computerised
manufacturing
Measurable
Sustained the sales
growth over last 5 years.
Performance of all the
department are
monitored on regular
basis.
Many new customers
have been developed in
last 3 years in the
domestic & export front.
Have successfully
developed new product
e.g. High Performance
Coupling to cater niche
market.
ISO 9001-2000 Quality
System is followed
Product
Manufacture almost all
types of Coupling under
one roof.
Delivery of casting
has few problems
Good workmanship. No CE for
Machine
Directive.
Process to
find out
information
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 34
about
couplings
inclusion in
CE.
Made many
improvements on
existing designs. Have
new company for
tooling
Need to learn
more about
harmonized EN
standard for EU
Have ATEX marking.
Good Measuring
equipment available
with well maintained
tool room.
Pricing
Pricing is competitive. CBI wants to
check price
competitiveness
Have not made any price
increase since FY 2001
in the Market..
Have price structure of
all our major
competitors.
Terms of payment are
L/C for new customers.
For regular distributor,
we offer 90 days credit.
As per CBI , it is
risky
Opening a
L/C for small
order value is
costly.
Sales Quality of Brochure is Presentation of Comments
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 35
Promotion good. company website
to be improved.
from CBI
awaited
Logistic
Information
Can offer on CIF base
port basis using their
expertise in shipping
cost effectively in India.
No Finished
products are kept
in stock.
Can be kept
once we
know Market
requirement
over the
period of
time.
Can offer CIF with min
order value of Euro
3000/-
Using only
fumigated wood.
Should use pine
wood.
Communic
ation
Quote is given in 48
hours for Std items. For
Non Std Items inquiry is
acknowledged & offer is
given in 4 days of time.
All the orders received
are acknowledged Same
day & planned date of
dispatch from our works
is informed in 6 working
days to the customer.
After shipment is
effected, we update
customer about shipping
details & Expected date
of arrival at destination
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 36
port.
Export
Knowledge
And
Market
Orientation
Have long experience
with many different
countries.
Market entry
strategy , export
plan, budget
For export need to
be formulated.
Attending
CBI seminal
Expro 55
To go ahead
in this
regards.
Are informed about
price structure of
competitors.
Do not read proper
magazines
CBI will send
list of
available
magazines.
Manageme
nt
Management is effective
& motivated.
Need to build
export cell.
Have stable workforce
R & D
capability
Regularly developing
new products
Can further
improve this dept.
Market
Possibilitie
s.
Are very prosperous Need to have a
well built &
structured
Strategy.
Attending
CBI seminal
Expro 55
To go ahead
in this
regards.
TABLE 5.2 COMPANY AUDIT
5.3.2 Market audit:
Audit
Category
Opportunities Threats Action Plan
Governmen Neutral
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 37
t &
Internation
al
Regulations
Macro
economic
Trend
Shifting to India as
source can be well
capitalized.
Rathi will face
competition from
Chinese
companies in this
field
To check
actual
situation &
take Action
accordingly
Czech Republic , Poland
& Hungary are good
markets in
This regards
Branch
perspective
Automation is growing.
This will enhance
couplings demand for
Technologi
cal
Developme
nts
Neutral
Competitio
n in
national
&
Internation
al Market
In a position to compete
Chinese Prices.
Demand
Trend
Positive.
Others Can work as Possible
versatile partner for EU
Not able to get the
message across.
Plan to work
out structured
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 38
traders Strategy with
the help of
CBI
to enter in
West Europe
Market
Transport
Longer Lead times
Will consult
CBI on this
matter
TABLE 5.3 MARKET AUDIT
5.3.3 Competitor analysis:
This is the detail chart which gives brief picture of Rathi Couplings & its competitors.
Please see
COUPLI
NG
RAT
HI
FENN
ER
FLE
ND
ER
DAVID
BROW
N
RENO
LD
REXNO
RD
WELM
AN
BIBBY
FLEX
IBOX
COUPLIN
G &
DRIVES
KTR DODG
E
JAW
FLEX
L,SW,
RRS,
HRC,
L
NE
UPE
X
----- SPIDER
FLEX
----- ----- ----- ----- KTR
ROTEX
-----
RFC
A &
B
RSC70
6449
----- ----- ----- ----- 14 A1-H
etc
-----
TYRE
T / TO
FENA
FLEX
F40
-----
----- TYREF
LEX
TY40
OMEGA
E
----- ----- ----- ----- PARAF
LEX
PX40
RST
SPAC
ER
SM
SPACE
R
-----
----- RSS
SPACE
R
ES
SPACE
R
----- ----- ----- ----- PS
SPACE
R
PIN &
BUSH
RC,R
B
CONEF
LEX
PINFLE
X,DISC
FLEX
BIBBY
EFLEX
PF
1/3,P36
C/3P
E FLEX
METALL
IC DISC
LM /
EM
TRC
ARP
EX
THOMA
S
TURBO
FLEX
META
STRE
AM
LMC
ARS
,AR
D , DJ
TSKS ,
LS
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 39
H
TORSION
ALLY
SOFT
HYFL
EX
HOLSE
T/REN
OLD
HY
RB
GRID
GRID
FLEX
FALK
GRID
LIGN
LGF
T
T
COUPL
ING
RATHI LOVEJ
OY - F
POOLE
DAVID
BROW
N
RENOL
D
KOP-
FLEX
WELM
AN
BIBBY
JAURE FALK FLEND
ER
SIER-
BATH
(AJAX)
GEAR
FLEX
GEARF
LEX
SIER-
BATH
MAX
BORE
LINKM
ASTER
GEARF
LEX
FLEXA
LIGN,
FD
AGMA,
FDT
TYPE
HA
G - 20
ZAPEX
COUPLI
NG
LFG
SERIES
- F
TYPE
GF 8
HAS
TYPE-
HM
GFD/GF
DW
SERIES
- 1000
TABLE 5.4 COUPLING COMPATIBLE AND EQUIVALENT COUPLING
CHART
Rathi makes almost all types coupling with few exceptions. Against each type of
coupling category, various global competitors with whom we have to compete with, are
mentioned.
As mentioned earlier efforts are being made to find out details of our competitors in
German Market. This information will give their market share in German Market.
Comparison of Rathi Couplings with its Competitors with regards to Price/ Quality.
With regards to quality, Rathi couplings are at par with its GLOBAL Competitors.
Rathi have been approved by leading pumps OEMs around the world as their main
source for Couplings.
Technical comparison of Rathi couplings to its equivalent Competitors size was also
done.
Sr.
NO.
Hub
List
Price
(A)
Rathi
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 40
Lovej
oy
Marti
n
Mask
a
EPT
Lovej
oy
Martin Maska
EPT Rathi
Price To
Distribut
or
1 35 3.25 3.10
3.25
3.25
0.98 0.93 0.98 0.98 0.58
2 50 3.25 2.90
3.25
3.25
0.98 0.87 0.98 0.98 0.58
3 70 5.05 4.80
5.05
5.05
1.52 1.44 1.52 1.52 0.90
4 75 5.80 5.80
5.80
5.80
1.74 1.74 1.74 1.74 1.04
5 90 8.90 8.90
8.90
8.90
2.67 2.67 2.67 2.67 1.60
6 95 13.70
13.60
13.70
13.70
4.11 4.08 4.11 4.11 2.45
7 99 17.30
17.20
17.30
17.30
5.19 5.16 5.19 5.19 3.06
8 100 25.60
25.50
25.60
25.60
7.68 7.65 7.68 7.68 4.80
9 110 35.00
35.00
35.00
35.00
10.50
10.50
10.50
10.50
6.20
10 150 44.80
44.80
44.80
44.80
13.44
13.44
13.44
13.44
7.92
11 190 70.00
82.00
70.00
70.00
21.00
24.60
21.00
21.00
12.35
12 225 85.00
96.00
85.00
85.00
25.50
28.80
25.50
25.50
15.00
Prices in US $
TABLE 5.5 JAW COUPLING HUBS PRICE ANALYSIS
Note: Price Reference
1. Lovejoy: Master Distributor List Efft. 01/01/2005
2. Martin: Current Price List
3. Maska: Product Catalog-22
4. EPT: OEM Price List W.E.F. 15/11/2004
SIZE FLENDE
R PART
1
FLENDE
R PART
4
PRICE
SEK
NET
PRICE
IN EURO
RATHI TO
DISTRIBUT
OR( )
PRICE
SEK
NET
PRICE
IN EURO
RATHI
TO
DISTRIB
UTOR(
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 41
)
B 68 227 12 5 146 8 3
B 80 275 14 6 156 8 4
B 95 345 18 7 200 11 5
B 110 459 24 12 405 21 8
B 125 644 34 16 549 29 11
B 140 871 46 21 710 37 14
B 160 1165 61 28 949 50 19
B 180 1525 80 36 1146 60 24
B 200 1922 101 46 1525 80 31
B 225 2377 125 54 1724 91 36
B 250 2898 153 66 2169 114 44
TABLE 5.6.1 PRICE LIST OF N-EUPEX (FLENDER / RATHI)
SIZE FLENDER
COMPLETE
COUPLING
PRICE SEK NET PRICE IN
EURO
RATHI TO
DISTRIBUTOR( )
B 68 373 20 8
B 80 431 23 10
B 95 545 29 12
B 110 864 45 19
B 125 1193 63 27
B 140 1581 83 35
B 160 2114 111 47
B 180 2671 141 60
B 200 3447 181 77
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 42
B 225 4101 216 89
B 250 5067 267 110
TABLE 5.6.2 PRICE LIST OF N-EUPEX (FLENDER / RATHI)
KW/
100
rpm
SIZE TORQUE
Nm
Max
rpm
PILOT
BORE
MAX
BORE WT MI
5.2 LFG
100 497 7600 10 35 4.2 0.0075
10.5 LFG
101 1002 6300 16 50 11 0.035
11.5 NGC1 1100 6700 20 50 10 0.12
26.1 LFG
103 2492 5000 16 60 15 0.05
28.5 NGC2 2720 6100 30 60 15 0.2
47 LFG
103 4486 4000 30 75 25 0.12
51.5 NGC3 4920 5200 40 75 26 0.5
89 LFG
104 8495 3350 35 90 39 0.238
96.5 NGC4 9220 4500 50 90 40 1
136 LFG
105 12982 2800 40 110 57 0.488
150 NGC5 14320 3950 60 110 62 2.16
209 LFG
106 19950 2500 45 125 85 0.75
230 NGC6 21960 3500 70 125 85 3.7
366 LFG
107 34936 2100 50 140 103 1.313
390 NGC7 37250 3250 90 140 120 5.3
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 43
470
LFG
108 44864 1900 50 160 138 2.125
515 NGC8 49180 3000 100 160 180 9
585 LFG
109 55841 1700 70 180 210 3.75
644 NGC9 61500 2600 120 200 215 12.5
856 LFG
110 81709 1400 70 220 277 7.625
930 NGC10 88800 2300 140 220 295 30.8
1146 LFG
111 109391 1250 110 260 550 14.5
1265 NGC11 120800 2100 150 260 560 57.4
1532 LFG
112 146236 1120 120 300 710 22
1600 NGC12 152800 1900 170 300 725 89.5
2084 LFG
113 198927 1000 140 330 980 34.5
2880 NGC13 275000 1550 190 320
2980 LFG
114 284455 900 150 370 1320 72.75
3620 LFG
115 345545 800 200 410 1700 88.25
3980 NGC14 380000 1400 210 340
4765 NGC15 455000 1350 230 360
6250 LFG
116 596591 710 200 455 2550 172
6800 NGC16 650000 1150 260 450
8375 NGC17 800000 1050 300 490
8890 LFG
117 848591 630 225 520 3620 309
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
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10730 NGC18 1025000 950 320 540
11770
LFG
118 1123500 560 250 610 4860 491
12700 NGC19 1200000 825 400 600
15521 LFG
119 1481550 500 250 710 6380 753
TABLE 5.7 TECHNICAL COMPARISONS BETWEEN RATHI AND FENNER
GEAR COUPLING
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 45
6. WEBSITE OPTIMISATION
6.1 QUALITY WEBSITE: A MUST: - A quality website for a DC company is a must
these days. A study done by the German researcher GfK
shows that most important
target groups use the internet heavily. The study has shown that 76 percent of purchasing
decision makers in Germany rely primarily on Internet as a research tool in their
purchasing process, 29 percent do research exclusively online.
In Europe e-commerce has not only become a way of doing business but a part of
routine. Whole the European corporate world has adopted internet as a primary source of
information. It became apparent that website will be main promotional tool. It will be
visited by existing customers. Interested customers may be directed towards it through
search engines. Prospective customers may be referred to it by brochures. Needless to
say, improvement in website was the first ever step in the execution of EMP.
First it was necessary to evaluate the existing website to find the flaws in it.
Experts from CBI were asked to give advice. After their comments, a decision was
reached to improve the website drastically.
6.2 PROMOTIONAL PLAN:-
In the promotion plan, the organisation describes what they would like to achieve
with the website and in what way this should be done. These results into an action plan,
for which goes: the more detailed, the better it is. A good promotion plan shows in very
small detail how the determined goals and target groups are to be reached. The process of
promoting website is a dynamic process and consists of four steps. Figure 6.1 displays the
process and its dynamic character. After the completion of the process, its evaluation will
show in what way changes or improvements are necessary.
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 46
Figure 6.1:- Promotion policy website
It is important to formulate which way to go with website. One has to determine
the goal of your website. Without detailed and clear goals, a website can t be used
efficiently and effectively. Very often a website presents the organisation structure itself
instead of presenting information in accordance with the needs of your clients.
Companies which start a website first have to define their goals. But also for companies
that have had a website for some time, it is a useful exercise to redefine their website
goals annually. Internet markets change continually and rapidly. One must do this;
otherwise one may be developing something very unique, it could turn out to be useless,
since customers do not need it.
6.3 CONTENT GOAL MATRIX
A valuable instrument to develop the content goals in more detail is the content goal
matrix. An example in table 6.1 will demonstrate the power of this instrument. Assume
you are a DC exporter and you are focusing on Germany. Then four columns of the
content goal matrix can be filled out.
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 47
Table 6.1:- Content goal matrix
Target groups (first column)
In the first column of the matrix one should fill out the most important target groups you
would like to target with your website. E.g. do you target consumers or businesses? Do
you focus on distributors, importers, agents or traders? Or both? And which EU-countries
are most important for you? It is also possible that several target groups are relevant. As a
consequence, several goals can be determined per target group as well. In this case,
formulate well-separated goals per separate target group. In this example the two main
target groups are:
1) New importers in Germany (most important)
2) Existing importers in Germany
Action goal (second column)
Here you can fill out the actions you would like to achieve with the website. For example,
you want the new importer in Germany to ask you for a sample by filling out a form on
your website. Another action goal could be that the new importer from Germany makes a
phone call to your sales department.
Attitude goal (third column)
In order to make him actually undertake the action you have defined, the new importer
should be convinced that you are a reliable supplier of a quality product. In other words:
your website should form his attitude! After (and only after!) you have created this
attitude, the action you have defined, can be undertaken. In this case, the new importer
PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN
WEBSITE 48
must have an attitude that you are a reliable company and that you are selling quality
products.
Information goal (fourth column)
In order to form the attitude of the new importer, your website should contain certain
elements. In this example, the importer should have knowledge of your product, the
production methods and certification standards and also of your export experiences and
current clients (track record). All these things together will create the right attitude that is
needed to make him undertake the desired action as you have defined with your website.
The second target group for your website could be the existing importers in Germany.
Although they are not highest in your priority list, they are still important. Your action
goal could be to also sell them other products or to have them send you a request for
proposal.
Then they need to know which other products you could supply (information).
They must still be convinced that you are also a reliable supplier for those products
(attitude).
This exercise with the content goal matrix is very important. This is your
framework, your direction for the website. Everything you create, change or maintain on
your website must be done in order to achieve these website goals. It is also useful to help
you make choices, certainly when you also set your priorities.
Priority
When formulating both the marketing- and content goals for your website, it is very wise
to prioritise them. The same goes for the different target groups that you may have:
decide on the most important ones. For example: you have set a goal that you would like
to offer after-sales services through extensive product manuals. But a far more important
goal is to gain new clients through the website. Your priority target group in this case
would be the potential client, which has consequences for the content of the website and
its promotion. Setting priorities enables you to make an efficient and effective promotion
policy and to carry it out.
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6.4 WEBSITE OPTIMIZATION:-
Marketing website implies that it should be in a good condition first. Both its technical
aspects and contents should meet certain requirements if one wants to have a maximum
result from your and marketing efforts. This topic describes a model that can be used to
assess your website on its usability. It is based on checklists of experts like Ben Vroom
and Jacob Nielsen.
The following main elements are discussed:
I Contents
II Navigation
III Communication
IV User friendliness
These four elements are subdivided into subjects, which can all be judged
individually by evaluating the thesis that is given. The checklist can be used to set up a
framework for a new website or to optimise existing website, both with regard to contents
and the website promotion.
Contents You can judge the quality of the website contents by means of two elements:
1) Effective and efficient goals
2) correct presentation of information and organization
These elements can be judged by testing in what way the website matches the
thesis. Try to look through the eyes of your target group and evaluate the thesis with for
example Insufficient (I), Sufficient (S) or Good (G). Once you have finished the
checklist, you will have a better idea of which elements of your website are good or could
be improved. The theses can be found in table.
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TABLE 6.2:- EVALUATION CONTENTS
Navigation
You can evaluate the navigation of your site by means of the following criteria:
1. Clear layout
2. Workable user interface
3. Clear hyper links
4. Effective homepage
5. Clear page layout
6. Word and PDF files
7. Other points of attention
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TABLE 6.3:- EVALUATION NAVIGATION
Communication
The quality of information through the internet can be determined by means of the
following criteria
1) Accessibility of presentation of the information
2) Accessible style and understandable texts
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TABLE 6.4:- EVALUATION COMMUNICATION.
User friendliness
User friendliness can be shown by means of the following factors (table 2.4):
1) Fast loading time
2) Platform and browser independent
3) Scrupulous registration
TABLE 6.5:- EVALUATION USER FRIENDLINESS
After going through the checklist you can determine a list of possible refining
points per criterion. You will find that a number of criteria are linked. You can
execute this test on your website yourself; you can have it done by a representative of
your target group, or by an internet expert. He or she will behave like your target
group and execute a test surfing session. This way you can see with your own eyes
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how your target group browses through your site. This will show useful refining
points.
Homepage:-
You will never get a second chance for a first impression
The homepage is one of the most important pages of your website. It is your
company's face to the world. Increasingly, potential customers will look at your
company's online presence before doing business with you - regardless of whether
they plan to close the actual sale online. Its main goal is to persuade the (EU) buyer to
visit the other pages of your website. In practice, the EU buyer that visits your
homepage will decide in 8 seconds whether he or she will explore your website or not.
You should give the target group the sort of information that will convince him to
explore your website in more detail.
Recommendations
1 Persuade visitors to continue:- In eight seconds your visitor decides to leave or to
continue on your page. Include elements that convince him to continue, such as track
record, proof of quality (certification), production methods and USP.
2 Tagline:- A website's tagline must explain what the company does and what makes
it unique among competitors. If you have been in business for 70 years and have
served 2,000 clients, then no one can take that away from you. It makes you different.
Locality can make you different if you are the only company in your region selling
what you sell. Being a specialist can make you different.
3 Group all your company information:- Good company information is especially
important if the site hopes to support recruiting, investor relations, or PR, but it can
also serve to increase a new or lesser-known company's credibility. An "About Us"
section is the best way to link users to more in-depth information than can be
presented on the homepage.
4 Emphasize your most important content elements:- Don't just describe what lies
beneath the homepage. Show some of your best (or most recent) content!
5 Don't over emphasize critical content:- You might think that important homepage
items require elaborate illustrations, boxes, and colours. However, users often dismiss
graphics as ads, and focus on the parts of the homepage that look more likely to be
useful.
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6 Use meaningful graphics:- Images are powerful communicators when they show
items of interest to users, but will backfire if they seem irrelevant. For example, it's
almost always more effective to show photos of real people actually connected to the
topic rather than show pictures of models.
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7. MARKET INTELLIGENCE
Market intelligence is continuous process in which form carries out
investigation to find out the information about the market, environment, competitors
etc. It is an ongoing process. Market, environment, competitors are always changing
hence market intelligence is an ongoing process. It is not carried out to find out
specific information. General information which may or may not have any immediate
use is found out. If not of any specific immediate use, it still is useful in understanding
the macro environment. Market intelligence gathered earlier can be useful for the
solution of current problem. Similarly information gathered right now can have some
unanticipated future problem.
CBI suggested a company to have a cutting edge should have most
comprehensive information. Hence intelligence activity was given a boost in the span
of project.
7.1 CERTIFICATIONS
European market has market access requirements. These are
Consumer health and safety market access requirements During recent
years consumer health and safety has become an important issue in
international trade. Public authorities, European consumers and also industries
themselves are extremely sensitive to any negative impact a product may have
during or after its use.
Environmental market access requirements Because of growing
industrialisation in the world, the need for natural resources has grown
enormously, while the production of waste and emissions to the environment
has increased at the same time. Environmental problems such as the
greenhouse effect, depletion of the ozone layer, extinction of species, pollution
of air and surface water have been recognised as serious environmental
problems since a few decades. As a result of the growing need to preserve the
environment, countries worldwide have committed themselves to the concept
of sustainable development . Sustainable development is a process of change
in which exploitation of resources, the direction of investments, the orientation
of technological development, and institutional change are all in harmony and
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enhance both current and future potential to meet human needs and
aspirations. In other words: sustainable development is the development that
meets the needs of the present, without compromising the ability of future
generations to meet their own needs.
Social market access requirements Social issues are important market access
requirements in international trade. Social issues concern both general
labour conditions, such as minimum wage and maximum working hours as
well as health and safety of the employees. European trading partners more
and more request a minimum of social requirements from their suppliers in
developing countries. This is done through social or ethical trading
requirements, suppliers declarations, social responsibility and social
accountability schemes. Exporters to the European Union are not obliged to
comply with legislation on labour conditions in the countries of the European
Union. Companies in developing countries only have to comply with
legislation in their home country. However, the requirements demanded by
the private sector are an important issue when looking at accessing European
markets.
Quality market access requirements The word quality is used in many
situations, in different meanings, because it has several definitions. Quality, or
total quality, means the complete appliance to requirements and wishes of all
parties involved with the product, i.e. final consumers, legislators and other
market parties. Therefore, quality aspects are valid at a business-to-business
level, when buyers are the consumers and it is crucial when the products are
sold to the final consumers, i.e. business-to-consumer. Looking at the
intensive competition and the ever-increasing legislative requirements as well
as non-legislative market requirements, companies have to adapt, adopt and
improve constantly in order to stay competitive. This is directly or indirectly
connected to the quality of the products and/or services provided.
To fulfill these requirements different certifications are required. Intelligence
was carried out to find out to the directives, requirements, procedures and certification
bodies needed to acquire these certifications. Theses certifications are
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CE Mark:- The CE Mark is a conformity marking consisting of the letters
CE. The CE Marking applies to products regulated by certain European
health, safety and environmental protection legislation. The CE Marking is
obligatory for products it applies to: the manufacturer affixes the marking in
order to be allowed to sell his product in the European market.CE is an
abbreviation for Conformité Européenne, French for European Conformity.
The CE Mark indicates that the product it is affixed to conforms to all relevant
essential requirements and other applicable provisions that have been imposed
upon it by means of European directives, and that the product has been subject
to the appropriate conformity assessment procedure(s). The essential
requirements refer, among other things, to safety, public health and consumer
protection.
ISO 14000:- The ISO 14000 family is primarily concerned with
"environmental management". This means what the organization does to:
Minimize harmful effects on the environment caused by its activities,
and to
Achieve continual improvement of its environmental performance.
OHS:- Market Access Requirements from the private sector in the EU very
often include requirements to safeguard a certain minimum for occupational
health and safety (OHS). Especially for suppliers in developing countries,
where labour conditions are not always looked after, European buyers will
focus on OHS. When accessing EU markets, the issue of OHS certainly needs
attention.
OHSAS 18001:- OHSAS 18001 was created via the concerted effort from a
number of the worlds leading national standards bodies, certification bodies,
and specialist consultancies. It stands for organizational health and safety
standards.
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SA8000:- European Union requirements to safeguard the social accountability
(SA). Developing countries are not as strict about social accountability, but to
access EU market SA is essential.
7.2 SEARCH ENGINES
Marketing a website through search engines is called Search Engine
Marketing (SEM). A search engine is a large database that searches many web pages
on the World Wide Web. When people enter keywords into a search engine, the
search engine finds pages based on meta tags, site contents and page ranking. A good
example of a search engine is Google.com, which is used the most worldwide. Search
engines are among the primary instruments that are used to find websites. Research
shows that more than 50 percent of the visit of a website comes from search engines.
That is why a website with good search engine listings may see a serious increase in
traffic. Unfortunately, many websites appear poorly in search engines or may not be
listed at all. This is usually caused by the fact that most owners of websites do not
consider how search engines work. Reaching a good search engine ranking is a
challenge. Submitting your website to search engines is only part of it. It is important
as well to ensure that your web pages are accessible to search engines. It is a process
that requires time and continuous attention, as search engines change their strategy as
well.
In project it was required to find out all about search engines. Top ten search
engines in targeted countries. Search engine submission process. Technicalities like
meta tags, key words etc. and their importance.
7.3 DATABASE:- To contact the customer it is essential to know information,
therefore preparation of database of all the European manufacturers was initiated.
First priority was given to Germany rest of the countries will be followed.
All the important industrial trade associations were found out. As their span
reaches specific type of manufacturer and that to in major number, they will be
targeted in next step.
Similarly information of trade directories was found out. Promotion through
trade directories is more easier than promoting for each manufacturer separately.
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8. FINDINGS
Market in France and Germany will grow more slowly.
Economies in Czech Republic, Poland & Hungary will grow at a faster rate.
Western European countries will continue to shift part of their production base
to Poland, Czech Republic & Hungary to remain price competitive
Labour cost advantage of Poland, Czech Republic & Hungary will not remain
in next 3 to 5 years & they will be normal competitors to EU 15 members.
This will offer opportunities for DC exporters who have cost advantage over
EU 10 members.
Sourcing through Internet / email will become more acceptable in future for
products such as couplings.
Rathi will have to face stiff competition from Chinese suppliers of couplings
in EU 10 member s countries.
EU 10 country member will look for partners from developing countries to
enhance their production base.
Rathi Couplings will be acceptable to in EU member countries as they have
been accepted in the developed countries.
Rathi will require min 1 to 2 years to get along with EU market.
Largest importer of engineering component in European Union is Germany,
followed by Italy then France.
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9. LIMITATIONS
Although preparation of export marketing plan was done before time,
execution was not justified time wise. Some of the elements of plan
require long time span, it was impossible for me to complete each possible
element.
Some of the elements were demanding knowledge and skills beyond my
current capabilities, these elements were not executed by me. Such as
forecasting international demand requires quite a bit of experience, same
with the budgeting which need more veteran financial skills.
EMP was prepared by me taking guidance from my corporate guide. It
must be admitted that however meniscus there is still a chance of personal
bias. Data distortion due to individual perception or personal point of view
may be present which can result in inability of presenting exact situation.
SWOT conclusion, if found out may have suffered above mentioned
drawback therefore we suggested executives from all the departments
should review the SWOT analysis and formulate conclusion.
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10. CONCLUSION
Most of the Export marketing plan was prepared.
E-marketing was chosen as the chief promotional tool.
Evaluation of existing website was done and decision to improve the website
was taken. Conceptual prototype of new website was developed.
All the necessary information about search engines was collected.
Information about various certifications as well as their implementation
procedure was gained.
Market intelligence about European trade directories was done.
Market intelligence about European trade associations was done.
Database of German manufacturers was prepared.
Database formulation of other European manufacturers was started.
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11. RECOMMANDATIONS
Financial budgeting and forecasting requires financial skills and familiarity
with the company. A permanent financial executive of the company should be
delegated the right and responsibility of preparing budget and forecast.
SWOT analysis should be done by the executives from all the departments, so
that each department can make its own contribution. SWOT conclusion
formed by this process will present situation in more exact and useful manner.
First of all, it is necessary to set up an overseas office in the Europe. Till now,
all the major orders are received through distributor. As his interests will be
prioritised than the company s interests, it becomes quite essential to bypass
this channel of order procedure.
In Europe agents are legally well protected. Once employed, they become
semi-permanent entity in order procedure. For each successive order they get
commission, if they are involved only in initial order. Removal of agent is
very hard since law is on their side. This cuts back the profit, increasing the
price at the same time. Only solution that can be employed is to appoint
experienced marketing executive who is familiar with European way of doing
business.
Each company will have different person other than purchase manger who acts
as an influencer or some time decider of the order. After getting database of
European companies, next step is to prepare the database of personnel who are
not only responsible but also influencer/ decider for the new order procedure.
Establishing and maintaining good relation with such personnel will be easy if
earlier mentioned marketing executive is appointed.
Profit gained from the export department demand raise in manpower of export
cell. Additional staff will be handy in case of increment of overseas orders.
To establish and maintain customer base Rathi should provide Customer
Service level of highest Standard.
Market segmentations to be targeted are pump manufacturers, drive and
transmission manufacturers and lifting/handeling equipment manufacturers.
First of all Customers in Germany should be targeted as it is the largest
customer of engineering components. Rathi can then spread its customer base
in France as it has more convenient marketing channels available.
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Website is the initial element of export promotional activity. All the other
elements of promotion will precede website improvement. New website must
be made functional as early as possible.
Website will represent company. Quality of website will be perceived as the
quality of company at the first glance. Professional personnel should be
employed to improve the website so that quality of website will not be
compromised.
Website should provide maximum information with minimum efforts. At the
same time, each piece of information must be highlighted in a professional
way.
Based on information of certifications, procedure of acquiring certification
must be started quickly and must not be prolonged one. All certifications must
be acquired in the sequence as per their importance e. g. CE at first, then
ISO14000, then OHSAS and so on.
Advertisings of company must be published in trade magazines across the
Europe. Quality Brochures, Catalogues on CD, Price List and Product manuals
must be utilised. Supply of Free Samples for testing & approval will also help
in branding Rathi.
Anticipation of trade fairs will make it easier to get good stalls in these fairs.
Prior knowledge of trade fairs will act as competitive advantage over other
non-European supplier. An information extraction process of trade fairs must
be done.
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12. BIBILOGRAPHY
WEBSITES:
General
www.cbi.nl
www.google.com
www.kellysearch.com
Associations
www.hoppenstedt-verbaende.de
www.letrombinoscope.com
www.verband.info
www.hollandexports.com
www.euromonitor.com/businesslibraries
www.timebank.gr/www.infote.gr
www.dufa-index.de
www.gewusst-wo.de
www.behoerdenverzeichnis-bw.de
Fuid handeling associations
http://www.pumps.org
http://www.europump.org
www.bpma.org.uk
www.cpmass.com
www.sspma.org
www.asso-afpr.org
www.indianpumps.org
www.the-pda.com
www.sapma.net
www.swpa.org
www.pumps.asn.au
Certifications
www.cemarking.net
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www.cenorm.be
www.export-help.cec.eu.int
www.ohsas-18001-occupational-health-and-safty.com
www.sa-intl.org
Search engine information
www.searchenginewatch.com
www.whitelines.nl
www.scrubtheweb.com
www.websiteoptimization.com
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13. ABBREVATIONS
EMP: - Export Marketing Plan Rathi: - Rathi Transpower Pvt. Ltd. CBI: - Center for promotion of import (Dutch management consultancy) DC: - Developing country EU: - European Union L/C: - Letter of Credit
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