Developing marketing plan for the attraction of foreign investment to the company

MAKSYM KRAVCHENKO

IE-10-2

Structure Theoretical basis for the development of marketing

plan to attract foreign investment to the company Assessment of economic situation in “LVS“ ltd.

company and the analysis of the existing marketing plan

Ways of perfection of marketing plan aimed at the attraction of foreign investment to "LVS“ company

Aim and Tasks

The aim of the diploma work is to develop marketing plan to attract foreign investment to the company, to research the investment climate and investment attractiveness of

furniture market in Ukraine.

To achieve the goal it is necessary to perform the following tasks: analysis of the investment climate in Ukraine and furniture market; SWOT-analysis; identify problems and possible directions of the company; analysis of the competitive environment; development of investment projects and recommendations to

increase the flow of investment to the company.

About LVS ltd.

It is a large manufacture of furniture having a developed distribution network.

Was opened in 1997 Covers more than 45 cities of Ukraine Has 22 regional dealers in Russia

SWOT-analysis of "LVS"Strengths: Opportunities:1. Recognizable brand

2. High-skilled staff

3. Assortment line

4. Geography of the business

5. Production capacity

6. Net sales structure

7. Quality of products

 

1. Development of dealer network

2. Introduction of new production technologies

3. Development of new markets (export)

4. Development of company’s price range

 

Weaknesses: Threats:1. Financial motivation 2. Sharp seasonal fluctuations in sales 3. Pricing4. Minimal package of support given to franchisees. 5. Executive discipline 

1. Unstable labour market 2. Unstable economic and political situation 3. Taxation 4. Falling of a real estate market

Possibilities

Possibilities of LVS company are great. Volumes that factory can produce would be enough to enter the

international market in Europe, but to achieve this goal, the company needs to educate the whole staff of the

company that would compete with the leading furniture companies at European market.

Payback Period

To train the whole staff of the company we will need 110.25 million UAH

Calculation of the payback period can be presented as follows:

PP=Io/Pwhere:

PP - project payback

Io - the amount of the initial investment

P - net annual flow of money from the sale

Payback Period

Based on the income statement, we take the values of initial investments (110 250 000 UAH) and divided it by the outcome of annual net flow of money received from the sale of goods (80 350 000 UAH).

PP = 110 250 000/80 350 000 = 1,37

Thus, the investment will be repaid in 1,4 years

After advanced training and education, we want to achieve:Increasing sales by 35%Increasing profit by 40%Reduction of production costs by 20%Increasing ecological compatibility of products by 25%Raising brand awareness by 50%Improving production technology and modeling by 30%

Conclusions

 

Investment in human capital is an integral part of successful development of the company at all stages of its existence. In this case, investment in human capital will be an intermediate step before entering the international market in Europe, where our advantages will be higher than those of our competitors.