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8/14/2019 Global Marketing presentation on mobile
1/23
8/14/2019 Global Marketing presentation on mobile
2/23
Purpose
I. The purpose of this report is to analyse the three
potential foreign markets that TNC would want to
invest in.
India Thailand
Japan
II. Recommend market entry strategy and marketing
mix strategy
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overview
Part I
Environment factors
Part II Market entry strategy
Part III
Marketing mix strategy (4Ps)
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Background-1
Product : Mobile phone
Origin : The US
Market target : 5-14 years old
65 years old and above
Unique feature : -non-toxic plastic
-simplify
-toy shape
-emergency programmed dialing-big-sized button
-durable
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Background-2
Why foreign market ?
New arising competitor
Saturated market
Additional profit
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Country
Thailand India Japan
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Part I Environment Factors
Market size
Labour market
Market opportunity
Consumer Behavior
Competitor
Economy
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Market size
Source: www.fita.org (Federal International Trade Association)
Market age group is total percentage combining 0-14 years old
age group and 65 years and older group.
Urban area is where TNC launch the product; rural area is not
considered.
India has significant potential population that would possiblypurchase the product.
Therefore, India is the potential market in term of market size
comparison
http://www.fita.org/http://www.fita.org/8/14/2019 Global Marketing presentation on mobile
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Labour Market
Source: www.fita.org (Federal International Trade Association)
India has very high working population
India has low average salary
The literacy rate of India is low; but the problem is overcome by
such big population
India has very advance technology in the IT industry which allowTNC to access to research with low cost
http://www.fita.org/http://www.fita.org/8/14/2019 Global Marketing presentation on mobile
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Market opportunity
Source: www.intracen.org(International Trade Statistic
Thailand and India are smaller markets compared to Japan
India has low domestic production with such population there is
room for foreign company
Japan has very big local market with giant brands fighting over
a saturated market
http://www.intracen.org/http://www.intracen.org/http://www.intracen.org/8/14/2019 Global Marketing presentation on mobile
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Consumer behavior
Thailand upper and middle classes
income are increasing Minimum wage has increased
Major population of India still willing to
sacrifice quality concern for price reduction Minimum salary has also increased
Japanese customer look for quality and durability in products As economic condition changed, price has became crucial factor Traditionally, Japanese customers are reluctant to foreign product
Japanese is off the list; India and Thailand are more relevant as TNC ismid tier product
Indian consumers has better taste toward IT-based product
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Competitor
Only Japan has direct competitor.
Bandai is the producer for children phone.
There are many producer for old people phone
India and Thailand are still fresh markets for this type of product
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Economy
Source: CIA World Fact book
Japans economy is very big India GDP look moderate as total but if divide per capita, Thailand is 4 times
high Thailand and India have moderate inflation rate -> low return on investment Japan economy look ideally but India economy is more suitable for TNC
because consumer in prosperous economy look for quality and expensivegood.
When income of population is low, consumer tend to look for good that valuetheir money
Product with reasonable price tend to sell well when inflation rate is high
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Part II Market EntryStrategy
Environment for market entry Government laws and policies Tax payment
Market entries: Direct Exporting Joint Venture Greenfield Operation
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Start Business in India
Where is it easier to start a businessand where not? 1 New Delhi, Delhi (easiest) 10 Chennai, Tamil Nadu 2 Patna, Bihar 11 Kolkata, West Bengal 3 Jaipur, Rajasthan 12 Mumbai, Maharashtra 4 Hyderabad, Andhra Pradesh 13 Guwahati, Assam
5 Bhubaneshwar, Orissa 14 Ahmedabad, Gujarat 6 Noida, Uttar Pradesh 15 Ranchi, Jharkhand 7 Ludhiana, Punjab 16 Kochi, Kerala 8 Indore, Madhya Pradesh 17 Bengaluru, Karnataka 9 Gurgaon, Haryana
Source: Database in Doing Business 2009 in IndiaSubnational series.
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Time and cost
Source: Doing Business database.http://www.doingbusiness.org/Documents/Subnational/DB09_Subnational_Report_India.pdf
http://www.doingbusiness.org/Documents/Subnational/DB09_Subnational_Report_India.pdfhttp://www.doingbusiness.org/Documents/Subnational/DB09_Subnational_Report_India.pdf8/14/2019 Global Marketing presentation on mobile
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Paying Tax
http://www.doingbusiness.org/Documents/Subnational/DB09_Subnational_R
http://www.doingbusiness.org/Documents/Subnational/DB09_Subnational_Report_India.pdfhttp://www.doingbusiness.org/Documents/Subnational/DB09_Subnational_Report_India.pdf8/14/2019 Global Marketing presentation on mobile
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Annual Household Income
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New Delhi
It has fewer days to prepare
The cost is low and tax payment is convenient
Most procedures and payment online
Annual household income is highest.
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Market entries
Direct Exporting
Joint Venture
Greenfield Operation
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Direct Exporting
We prefer direct exporting than indirect exporting
Keep the confidential technology and marketing strategy
Save money for agencies fee
Great control but more commitment
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Joint Venture
Our partner is Subhiksha company Largest retail chain and mobile phone retailer
Great experience in the market
Growing rate 8-10 per cent per annual
Have big share of the market and loyal customers
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Greenfield Operation
Set up a new factory in India
Reduce cost of transportation from China to India
India is quite good labor market in term of information technology
Issues to concern to set up Government requirement
Building cost
Labor, material