a study on the problems of international marketing
TRANSCRIPT
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A STUDY ON THE PROBLEMS OF INTERNATIONAL MARKETING
OF CERAMIC SANITARY WARES WITH SPECIAL REFERENCE TO
MUTHOOT APT CERAMICS LTD.
BY
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ZIBY CHERRY PHILIPS
A Dissertation / Thesis submitted in partial fulfillment of the
requirements for the degree of
MASTER OF BUSINESS ADMINISTRATION of
CSM Institute of Graduate Studies, USA
TASMAC
Training and Advanced Studies in Management and Communications,
C-2, SHARDARAM PARK, 37/37-A, SASSOON ROAD, PUNE - 411 001
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1998
CHAPTER-1
NATURE OF THE
STUDY
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CONTENTS CHAPTER - 1
TOPICPAGE NO.
Background and aspects of the problem----------------------------- 3
Purpose of the study --------------------------------------------------- 7
Statement of the Hypothesis ------------------------------------------ 9
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Rationale ----------------------------------------------------------------10
Definition of Technical terms & Acronyms -------------------------------11
Scope of the study ------------------------------------------------------------12
Outline of remaining chapters -----------------------------------------------13
Background and aspects of the problem
Direction of Indian Exports
(April - November1995)
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The survey indicates the entry of two new nations in the Indian top 20 buyers'list, namely Indonesia and Spain. Indonesia closed in as fourteenth as exportssurged by 131.8% while Spain was ranked as number eighteenth as Indianexports increased by 57.8%.
Rank Rank Apr-Nov'95
Country Exports($million)
% Change
01 01 US 3613.4 13.3
02 02 Japan 1390.5 12.3
03 04 UK 1289.9 24.2
04 03 Germany 1236.2 18.6
05 05 Hong Kong 1172.7 32.1
06 06 UAE 876.8 11.5
07 07 Belgium 697.5 22.0
08 09 Russia 688.3 44.9
09 11 Bangladesh 670.7 94.2
10 08 Italy 639.8 25.4
11 10 Singapore 506.9 09.0
12 13 Netherlands 453.8 41.7
13 12 France 451.2 33.8
14 - Indonesia 344.5 131.8
15 14 Saudi Arabia 308.6 16.0
16 15 Thailand 300.3 25.8
17 18 S.Korea 246.4 24.5
18 - Spain 245.8 57.819 16 Australia 243.8 09.6
20 17 Srilanka 237.8 10.3
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The researcher has understood from preliminary research that there is a sizeable
market for ceramic sanitary ware in the International market. The Indian players areafforded a great deal of assistance in marketing their products abroad. However, theperformance of Indian players in the export scenario is unimpressive.
This study sets out to find out what exactly are the reasons for the dismal performanceon Indian players in the international market.
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Purpose of the study
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The volume of world merchandise exports grew by 9.5 per cent in 1997, the secondhighest rate in more than two decades with the exception of 1994 when tradeexpanded by 10 per cent. The U.S., Germany, Japan, France and U.K. are the leading
exporters in that order. India only ranks 31st in the world with an export share of lessthan one percent in world exports.
It is abundantly clear that there is a great export market waiting to be tapped but itgoes without saying that the sailing is not easy. The performance of India has beenlackluster but is soon picking up. The purpose of the study is to find out theperformance of Muthoot APT Ceramics Ltd., an Export Oriented Unit (EOU) situatedin Cochin Export Processing Zone (CEPZ), Kakkanad, Cochin, in terms of its exports
and their first hand feel of the global market. The Plant exports Ceramic Sanitarywares and allied products and has a tie up with Advanced Product Technology ofBritain for technology transfer.
The study focuses at international trade from the viewpoint of Muthoot APT CeramicsLtd. The activities of the EOU can spread light on the problems faced by the concernor the lack of it, in the global market.
The results of the study can help in better understanding the concept of internationaltrade and in improving the efficacy and circumventing the problems in marketing theproducts. It goes without saying that some of the problems experienced by exportunits are common to other industries as well.
There is a serious lack of good information regarding the exports in the sanitary wareindustry. Basic information provided in the trade yearbooks of each country lacksconsistency in the degree of detail of information provided. Therefore it is difficult to
develop a clear picture of world trade in ceramic sanitary ware and all those involvedin future market planning would surely benefit from more orderly and timelyinformation. The following points are considered for the study -
Some relevant aspects of world trade today.
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India's performances in the most important export markets.
The future price implications.
India's supply
Need for adequate demand stimulation program.
Some aspects of market accessibility.
The study would also throw light on the market influences viz., socio-economicfactors, structure of the sanitary ware market in terms of import and distributionsystem, packaging, price level, Government regulations and legislation in terms of
input quotas, taxation, and safety measures. Furthermore, the study will also focus onthe quality requirements of the ceramic sanitary ware industry.
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Statement of the Hypothesis
Once the selection and definition of the problem have been accomplished, thederivation of the hypothesis is the most important step in the research process.
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Etymologically hypothesis is made up of two words, "hypo" (less than) and "thesis",which mean less than or less certain than a thesis. It is the presumptive statement of aproposition or a reasonable guess, based upon the available evidence, which the
researcher seeks to prove through his study.
The hypothesis is a powerful tool in research process to achieve dependableknowledge. It helps the researcher to relate theory to observation and observation to
theory.
The null hypothesis of the present study is:
" The Indian exporters are not able to match foreign technology and quality ofceramic sanitary ware available in the international market".
The existence of a large international market for ceramic sanitary ware has beenestablished. Therefore, the reasons for the lackluster performance of the Indianplayers need to be looked into.
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RATIONALE
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The study is based on a ceramic sanitary ware exporter based in Cochin ExportProcessing Zone, Kakkanad. The researcher feels that the outcome of the study willprovide a positive influence on emerging exporters as well as a refreshing study forthe old timers.
The study seeks to provide an impartial and unbiased study of the ceramic industry.The study is conducted in a professional manner using scientific tools. As theresearcher is an outsider, it is possible that he is able to pin point certain aspects thatwere overlooked by those in the industry.
It is hoped that the matter researched will be of importance to the Company as well asthe industry in the form of a reference tool. The recommendations of the researcherwill also give an insight into the untapped markets.
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Definition of Technical terms & Acronyms
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Ceramics: Making of pots, tiles, sanitarywares etc., by shaping pieces of clay andbaking them until they are hard.
Mold: A hollow container of a particularshape into which some soft substance ispoured, so that when the substance becomescool or hard, it takes this shape.
Sanitary fittings: such as lavatories and bidets
Kiln: box shaped heating apparatus for baking pots orbricks for drying wood.
Ceramics: may be defined as any inorganic,
nonmetallic solids processed or used at hightemperatures.
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Scope of the study
The use of market research is reasonably widespread. The implications may be listed
as follows:
a. It ascertains the position of a company in the ceramic sanitary ware industry.
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b. It provides a birds eye-view of the ceramic sanitary ware industry as a whole.
c. The study provides an idea of the growth prospects of the sanitary wareindustry, the factors influencing it, and the trends in the industry.
d. The study mentions the factors favorable to Indian players.
e. It helps in assessing and enhancing the effectiveness of marketing management.
f. It can reduce the risk involved in marketing management.
g. It offers guidance in market penetration and increasing product range.
h. It pinpoints strengths and weaknesses of the Company and the Indian ceramicsanitary industry.
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Outline of remaining chapters
Chapter 2 is titled Review of Related Literature. The chapter deals with the industrialbackground of the study, and the theoretical aspects of the study. The profile ofMuthoot Apt Ceramics is also mentioned.
Chapter 3 is titled Research Design and Methodology. The problem and hypothesis isdiscussed. There is a detailed description of the research design. The methodologicalassumptions and limitations are stated. The chapter summary provides a gist of thematter contained in the chapter.
Chapter4 is titled Sources of Data. Primary data, secondary data and the samplingprocedure adapted for the study is explained in great detail. The target population, sizeof sample and the type of sampling technique used is explained along with theconstraints and limitations of the sampling procedure.
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Chapter 5 is titled Presentation of Tabulated Data. This chapter concerns the processof taking completed questionnaires and preparing them foe analysis. Raw data as theyare received from the field in primary data collection are in no condition for
interpretation. Tabulated data is one step towards making this data intelligible.
Chapter 6 is titled Analysis of data and interpretation. The tabulated data is analyzedand interpreted in this chapter. The primary data is transformed into meaningfulinformation. The researcher is able to make conclusive findings from the analysiscarried out here.
Chapter 7 is titled Results of the Study. The chapter deals with the findings of thestudy. The problem researched is studied and the outcome of the study is explained indetail. The hypothesis is tested and its acceptance or rejection is mentioned. In casethe null hypothesis is rejected, then the alternative hypothesis is accepted.
Chapter 8 is titled Summary. The chapter provides a summary of the tabulationundertaken in chapter 5.
Chapter 9 is titled Conclusion. The chapter explains in detail the conclusions reachedafter the study. It provides in a nutshell the results of the entire study undertaken.
Chapter 10 is titled Recommendations. Based on the study the researcher offersrecommendations to the Company in specific and the industry in general. These
recommendations are based on the findings of the study and may help the Company indesigning its marketing strategies.
Chapter 11 is titled Appendix. The appendix contains the blank questionnaire as wellas other relevant information. It contains additional information.
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Chapter 12 is titled Bibliography. The bibliography gives details regarding thematerials researched for the study. A list of all written materials used for the study isincluded here.
CHAPTER - 2
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REVIEW OF RELATED
LITERATURE
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CONTENTS OF CHAPTER - 2
TOPIC PAGE NO.
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Industrial Background of the study--------------------------------------II-2
Theoretical Background of the study ------------------------------------II-7
The Company - A Profile -----------------------------------------------II-12
Chapter Summary -------------------------------------------------------II-20
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Industrial Background of the study
The ceramic industry has become competitive and players have understood theimportance of constant innovation and state of the art technology to stay in the race.Well-proven machinery provided by manufacturers with long experience is preferred.The enormous range of designs and sizes permit utmost freedom of choice for eachindividual scheme.
Unstable demand at home and contracting markets abroad create strong downwardpressure on unit sales prices and profits. The ceramic industry is highly sensitive tosigns of political and economic uncertainty.
In 1996, most of the Building Materials Division companies saw the dollar value oftheir unit sales prices decline as a result of increasing competition in their domesticand international markets
An important development has been the establishment of marketing and distributioncompanies in Germany, the UK and, most recently, the US. By maintaining closecontact with consumer groups and key distributors in the main export markets, thecompanies have ensured that they keep abreast with changing demand trends.
Strengthening the Customer Reach by expanding service coverage to include all of thecompany's products and create brand synergy, will further strengthen its position inthe retail and distribution market.
Sharp rise in revenues is possible from successful export strategy, which seeks toincrease the share of processed materials in its
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Export mix.
Investments
Fully mechanized casting lines, defect-minimizing robots and energy-saving kilns can
improve the plant's production flexibility and sharply raise its internationalcompetitive edge. Installation of CAD/CAM department, can also improve theproductivity, as shown by the Turkish ceramic manufacturers
The Turkish company, EYAP-Artema's investments in 1996 were focused onimproving production quality, flexibility and speed as well as on easing bottlenecks.
In 1996, the company invested $4.5 million in modernization and expansion of itscasting, buffering and polishing processes and installed CAD/CAM, MRPII, andautomatic inventory systems. These improvements have made it one of the foremostplayers in the whole world.
Another development in the industry is the establishment of flexible and modernproduction lines that facilitate customized orders of premium products.
EYAP-Vitra , a Turkish firm has capacity to manufacture over 2 million big piecesper year, making it one of the single largest ceramic sanitary ware plants worldwide.Continual investments in advanced technology have sought to ensure EYAP-Vitra'sinternational competitive edge through higher productivity, greater flexibility andimproved quality. It was the first to adopt electrostatic glazing and to set up a fullyautomatic fettling and glazing line. With the plant's new fully-mechanized casting
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lines producing one unit every 20 minutes as compared to the usual 6-8 hours, itsaverage worker productivity is roughly two times the industry average.
In addition to its large and flexible production capacity, one of EYAP-Vitra's keystrengths is its high standards of quality. EYAP-Vitra was the first Turkish ceramic
sanitary ware producer to be certified to ISO 9001 standards as well as to all the majorstandards of the European Union and North American markets. In 1996, the companyreceived the prestigious quality certificate of the Ceramic Industry CertificationScheme.
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Some well-known sanitary ware manufacturers and their product range: (International
scenario)
Cisal Far East Office
Bathroom accessories
Conic Collection
Faucet
Connell Bros. Company (Hong Kong) Limited
Full range of sanitary wares
Dachong Ceramic Works Limited
Full range of sanitary wares
Dah Chong Hong Limited
Full range of sanitary wares, faucet, bathroom accessories, sink
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Deacon & Company Limited
full range of sanitary wares, synthetic sinks
Dreyer & Company Limited
faucet, stainless steel urinals and sinks
Dynasty Industries (Hong Kong) Limited
full range of sanitary wares, elderly and disable sanitary wares, faucet, shower cubicle,
Euro Building Material Supplies Limited
sanitary wares
FIE Company Limited
bathroom accessories
Fitness Concept Leisure Supplies Limited
full range of sanitary wares
FRP (Hong Kong) Limited
full range of sanitary wares
German Kitchen (China) Limited
full range of sanitary wares, bathroom accessories and sink
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Gloss Mind Industries Limited
jacuzzi
Grohe Pacific Pte. Limited
faucet
Hang Fat Hong
bathroom accessories
Hendler Seaporcel (Hong Kong) Limited
full range of sanitary wares
Hoechst China Limited
full range of sanitary wares
Honest Shower Door Company Limited
Bathroom accessories, shower door and cubicle
Honnin International Limited
bathroom accessories
In Bath Equipment Limited
full range of sanitary wares
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Inchcape Building Products
full range of sanitary wares
Interform International Limited
bathroom accessories
Jardine Engineering
full range of sanitary wares, faucet, sensor flushing system
Jets Technics Limited
toilet cubicles
Jibpool Building Materials Limited
full range of sanitary wares
Key Technologies International Limited
washroom accessories
Kung Sheung International Company Limited
full range of sanitary wares, bathroom accessories
Lawdion (Regent Asia) Building Supplies Limited
bathroom accessories, jacuzzi, hotel hair dryer, shower door
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Lemon Glass (MWAG) Company Limited
full range of sanitary wares, faucet, bathroom accessories, sink,
shower cubicle
Lock's Industrial (Hong Kong) Company Limited
shower cubicle, stainless steel washroom equipment, auto soap
dispenser and air fresher
Luen Hing Hong Building Materials Limited
full range of sanitary wares, faucet, sink
Main Plan Limited
bathroom accessories
Markway International Limited
full range of sanitary wares, bathroom accessories, hand dryer
Ming Hop Company Limited
hydromassage, shower cubical
Moflex (Hong Kong) Limited
full range of sanitary wares
Naka Corporation Hong Kong Branch
toilet cubicle and partitions, bathroom handrail , toilet handrail for
handicap
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P & A Engineering Limited
jacuzzi
Parks Supplies Company Limited
toilet and shower cubicle
Polytek Building Supplies Limited
full range of sanitary wares
Portfolio Group Limited
faucet
Radnor Limited
stainless steel sink, trough and urinal
Regal Sanitaries Limited
full range of sanitary wares
Rontiff Limited
full range of sanitary wares
Sanitus Building Materials Limited
bathroom fittings and accessories, sanitary wares
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Sellmax Limited
toilet and shower cubicle
Shougang Concord Construction Materials Limited
full range of sanitary wares
Siu Fung Ceramic Holdings Limited
full range of sanitary wares
Sun Kwong Bath Boutique Limited
full range of sanitary wares, faucet, shower door
Sunwall International Company
full range of sanitary wares
Swire Engineering
full range of sanitary wares, faucet
Titan International Limited
bathroom accessories
USC Asia Limited
full range of sanitary wares
Wideland Limited
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faucet, water massage
William Jacks & Company (Hong Kong) Limited
full range of sanitary wares
Few Indian Ceramic Sanitary Ware Manufacturers
(as hosted on the internet)
INDIA (+91)
COMPANY: BRISK INTERNATIONAL (P) LTD
ADDRESS: 1101, Arunachai Building 19, Barakhamba Road. New Delhi - 110 001,India
TEL: 91-11-3723134 to 38 FAX: 91-11-3721607/3731994
TELEX: 031-61791 BRSK IN
ACTIVITIES/PRODUCTS: Brokers for: Designer Sanitaryware glazed Tiles - Coloured, Printed and ArtisticCollection,
Designer Bathroom fittings - Chrome, gold & Silver plated, powder coated in matching colors. Stainless Steel
Kitchen Sinks, Cement Asbestos Corrugate/ Flat Sheets, GI/SSW/PVC Pipes & fittings, Bath Tubs, Shower Trays,Water Tanks, Plywood, Decorative laminates, MDF & Partition Boards, Flush Doors, Vinyl Flooring, Float & SheetGlass etc.
INDIA (+91)
COMPANY: DHAWAN SANITARY UDYOG
ADDRESS: T-29/N-4, Baljeet Nagar, Opp. Janta Park, New Delhi - 110008 INDIA
TEL : (91)-(11)-5728270 (R) 91-11-3267974 (O)
E-MAIL : [email protected]
ACTIVITIES / PRODUCTS : Exporter & Manufacturers of : Sanitary & Bathroom fittings
CONTACT PERSON : Lalit Dhawan
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INDIA (+91)
COMPANY: GMB CERAMICS LTD
ADDRESS: 23,Ganesh Chandra Avenue, Calcutta - 700 013, India
TEL: 267600, 266204, 267519, FAX: 091-33-2259255
E-MAIL: [email protected]
ACTIVITIES / PRODUCTS: Only sanitaryware unit in Eastern India. Manufacturing the most captivating Sterlingrange of WCs, Wash Basins and other essential fittings in myriad colours and designs.
CONTACT PERSON: Mr. R. A. Jalan
INDIA (+91)
COMPANY : SANITARY SYSTEM (INDIA)
ADDRESS : 6 Shiv Krupa Industrial Estate. L B S Marg, Vikroli (West) Bombay- 400 083, India
TEL: 91-22-5780344 / 5756841 FAX: 971-22-3433386
ACTIVITIES/PRODUCTS : Manufacturer of flushing cisterns, toilet seats & mirror frame. Experience ofmanufacturing 25 years. Products are result of intensive scientific research, well known for quality, durability &functional utility.
CONTACT PERSON : Mr Mukesh Shah
INDIA (+91)
COMPANY: SHYAM LAL AGGARWAL & SONS
ADDRESS : 3683, Chawri Bazar, Delhi-110006. India
Tel: 91-11-3276247 Fax: 91-11-3262887
E-MAIL : [email protected]
ACRIVITIES / PRODUCTS : We Shyam lal Aggarwal & Sons.
Leading Manufacturers & dealers of exclusive & designer hardware and sanitaryware. We offer wide selection ofethnic Indian traditional hardware items. and also deal in elegant decorative items. Our 20 years of experience hasproduced altogether different world of excellent Bathrooms, Doors and Window fittings. Our customers are all overIndia and our export items are famous in India & as well as all over the world. Our showroom is located in the Asia'slargest wholesale market in Delhi.
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CONTACT PERSON: Aditya
Theoretical Background of the study
Product:
Sanitary wares are made of ceramic materials like China clay, Ball clay, Feldspar,Quartz etc. After casting they are coated with glazing material to give a glaze finish tothe finished products.
Sanitary wares include items such as wash basins, kitchen sinks, urinals, water closets,bath tubs, cisterns, bidets etc. According to the applications they are made in different
sizes and styles. They are also given pleasing colors to match the surrounding wherethey are fitted.
Sanitary wares of exclusive designs, which incorporate water saving systems, are themodern trend. These items find their applications in bathroom and kitchens of houses,hotels, hospitals and public places.
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Market:
At present India's share in international export market is very less, although the
products have export potential. In view of the developments taking place in theindustry, the market for sanitary ware is likely to undergo a radical change in comingyears. Some of the units are going for technology upgradation and introduction of newproduct range. Furthermore, India also has price advantage. The Indian FOB price ofsanitary wares is much less compared to price charged by other exporting countries.
Hence it won't be difficult for India to compete with other countries and gain 10% ofthe total international export market. India is exporting 15% of its production everyyear.
Manufacture:
Feldspar and quartz after calcination are first ground to 20-30 mesh followed by wetgrinding to the requisite particle size in a ball mill. Wet slurry is then transferred tospeed plungers where well ground China clay, ball clay and talc in requisiteproportions are added and well dispersed. This mixture is called slip.
This slip is then put into moulds made of plaster of Paris and a thick wall like cast inthe shape of the article desired is formed inside the mould. As the absorption goes on,the thickness of cast is increased. When the required thickness is obtained theremaining slip from the mould is taken out into the slip container and the article castand left in the mould for about 10-12 hours, which becomes sufficiently stiff. Afterthe cast wares are removed from the moulds and allowed to dry in shades. When thecast get dried, they are bisque fried. The ceramic glazing composition well mixed withrequired colors is sprayed on the biscuited sanitary wares, which are then fed into thetunnel kiln for gloss firing. The finished goods are then inspected, sorted and finally
packed for sale.
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Plant and machinery:
Tunnel kiln for first firing of sanitary wares
Shuttle kiln for refiring of sanitary wares
Control and testing equipment
Disintegrator
Ball mill
Plunger
Agitators
Jigger and Jolley
Magnetic filter
Jaw crusher
Chamber dryer
Glazing line
Grinding machine
De-dusting system
Feed Hopper
Conveyors
LPG storage tanks
Kiln cars
Front end loader
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Raw materials:
China clay
Quartz
Feldspar
Ball clay
Zirconium opacifier
Ceramic colors and stains
Utilities and infra-structure
Land
Building
Water
LPG
Diesel oil
Electricity
Manpower
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Research takes the advantage of the knowledge that has accumulated in the past as aresult of constant human endeavor. It can never be undertaken in isolation of the workthat has already been done on the problems which are directly or indirectly related to astudy proposed by a researcher. A careful review of the research journals, books,dissertations, theses and other sources of information on the problem to be
investigated is one of the important steps in the planning of any research study.
Trade between nations has been growing rapidly. Economists have propounded someimportant theories to explain the factors prompting or necessitating trade betweencountries. International trade may take place due to the differences in comparativecosts of production between countries, as demonstrated by the famous classicaleconomist, David Ricardo.
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Haberler has attempted to provide a more convincing explanation in terms of thedifferences in the opportunity cost of production between countries and internationaltrade arises from the fact that factor endowments vary between countries and
international trade arise form the fact that factor endowments vary between countriesand that factor intensities differ between commodities.
Regions and nations specialize and trade with each other for the same reasons that
individuals specialize and trade. International trade is merely a special case of inter-local or inter-regional trade. According to Alfred Marshall, "the causes whichdetermine the economic progress of nations belong to the study of international trade."
Haberler points out: "International division of labor and international trade, whichenable every country to specialize and to export those things that it can producecheaper in exchange for others that can provide at a lower cost, have been and still areone of the basic factors promoting economic well-being and increasing the nationalincome of every participating country".
The global scenario that is emerging out of several recent and emerging developmentsis one that will foster international business. Although some developments hamperinternational business, the forces, which foster far outweigh them.
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Irving Kravis has pointed out that international trade arises as a result of theavailability and non-availability factors - a nation would tend to import thosecommodities which are not readily available domestically and export those whosedomestic supply can be easily expanded beyond the quantity required to satisfy thedomestic demand.
Export is the lifeline of a country. India has now understood that for existence and tocontinue its economic growth, it has to export in a large way. The commerce ministryas such has identified 34 thrust areas in which India has potentiality to become a
competitive exporter. Export thrust in these areas is expected to bring the expectedgrowth rate in $ terms to the targeted 25% per annum.
The export thrust items identified under extreme focus areas include agriculture, agro-chemicals, auto components, bicycles and parts, cement, drugs and pharmaceuticals,dyes and intermediates, floriculture, footwear, fresh fruits, gold jewelry, granites,hand tools, industrial castings and forging, tomato paste products, topical fruit juices,pulp and concentrates, preserved mushrooms, readymade garments, rice, softwarepackages, systems software, Computer Aided Design/ Computer Aided Manufacture(CAD/CAM), spices, synthetic and man made textiles and tires.
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Export Processing Zones (EPZs) are industrial estates that form enclaves from the
national customs territory of a country and are usually situated near seaports orairports. The entire production of such a zone is normally intended for exports. TheKandla Free Trade Zone (KAFTZ), set up in 1965 is India's first free trade zone.Cochin Export Processing Zone (CEPZ) commenced exports during the Seven Plan(1985-86).
Benefits for EPZ/EOU Units
Concessional Rent: The units set up in the EPZs will be eligible for concessional rentfor lease of industrial plots and standard design factory (SDF) buildings.
Clubbing of NFE: Net Foreign Exchange (NFE) earned by an EOU/EPZ unit can beclubbed with the NFE of its parent/associate company in the domestic tariff area(DTA) for the purpose of according Export House, Trading House or Star TradingHouse status for the latter.
Supplies from DTA: Supplies from DTA to EOU/EPZ units will be regarded as"Deemed Exports" and will be eligible for extra benefits.
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Sub-contracting: The EOU/EPZ units may be permitted to sub-contract part of theirproduction for job work to units in the DTA on a case to case basis.
Private Bonded Warehouses: Private bonded ware houses may be permitted to besetup in EPZs for stock and sale of duty free raw-materials, components etc. to EOUsand EPZs units subject to certain conditions.
An Evaluation of EPZ/EOUs:
A number of developing countries have pinned great hopes in EPZs or EOUs as ameans to increase exports, achieve transfer of technology, inter industry linkages,employment generation and economic development.
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The achievement of the objectives has been limited in most of the countries. TheMNCs have not been enthusiastic to transfer technology. It is mostly the assemblystage of production that has been relocated to the EPZs. Further, there has not beenscope for forward linkages as the entire output is meant for exports. The scope forbackward linkages is limited because of the heavy reliance on imports for the inputs.
Strategic Marketing:
The heart of modern strategic marketing can be described as STP marketing -segmenting, targeting and positioning. Companies are increasingly embracing targetmarketing. Target marketing help sellers to identify marketing opportunities better.
The sellers can develop the right offer for each market. Target marketing is one inwhich the seller distinguishes the major market segments, targets one or more of thesesegments and develops products and marketing programs tailored to each selectedsegments.
Profile of the organization
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MUTHOOT APT CERAMICS LTD. (MACL)
" Molded for supremacy in world markets, fired by international standards ofexcellence"
Muthoot APT Ceramics Ltd. (MACL) is a 100% Export Oriented Unit manufacturingdesigner Vitreous China Sanitaryware. MACL is promoted by the Muthoot Group intechnical and financial collaboration with Advanced Project Technology of U.K.
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The Registered Office is situated at Muthoot Towers, M.G.Road - 682 035, Kochi,Kerala and the factory admeasuring 11429 square meters is located at the CochinExport Processing Zone (CEPZ), Kakkanad - 682 030, Kochi, Kerala.
APT limited, the technical as well as financial collaborators of MACL is essentially a
ceramic consulting engineering company belonging to the Newton Hall group. APThas the rich experience drawn from Newton Hall group's pool of executives who havebeen involved in the design, construction and running of numerous ceramic factoriesthroughout the world.
Products
MACL manufactures middle to top of the range designer sanitary ware conforming toEuropean and American standards. MACL has the most modern equipment from U.Kand Italy
The initial product range shall comprise of three bathroom suites consisting of sevenpieces each as detailed here under.
MACL has a highly skilled expatriate management team to support the company'sobjective to produce Vitreous China Sanitaryware of the highest quality at the lowestcost. Process Quality International is guiding it through the ISO certification.Certification will be carried out by C.I.C.S a renowned certification body within theEuropean Ceramic Industry. Our commitment to Quality and Customer Care is ourdriving force.
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MACL manufactures middle to top of the range designer sanitary ware conforming toEuropean and American standards. MACL has the most modern equipment from U.Kand Italy.
The plant can supply the base range of colors and any specific color either decoratedor on decorated in small numbers.
MACL's commitment to quality and customer care:
Fully equipped laboratory for Quality Control, Research and Development
The Ceramic Technology Department vets all suppliers and only those who qualifybecome approved suppliers. Raw materials are stringently checked using the latest
technology in the Ceramic industry.
Color control is verified by sophisticated instrumentation to ensure that the customerdoes not suffer mismatches
The fired product is subjected to stringent testing to maintain the highest standards ofserviceability.
Every piece of vitreous china sanitary ware is hand inspected and only then releasedfor retail.
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Packing Details
Individual pieces are packed in 7 ply corrugated cardboard boxes whose outer
dimensions are as follows (Nominal measurements in 'mm'.)
Sl.No. Description Length Width Height
1 Closet 700 400 490
2 Cistern (Traditional) 420 245 375 3 Cistern (Shell/Contemporary) 465 240 360
4 Bidet 610 410 430
5 Wash Basin (Traditional) 625 505 300
6 Wash Basin (Contemporary) 600 495 245
7 Pedestal 230 195 715
8 Vanity Wash Basin 555 510 245
9 Cloakroom Wash Basin 535 405 250
10 Cloakroom Wash Basin (S/C) 530 395 230
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MUTHOOT BANKERS
"Maintaining international banking standards through customer oriented services"
Profile
Muthoot Bankers are very active and trusted in private banking circles throughoutKerala. The reputation of the Muthoot Group, carefully built and nurtured from itsinception, has helped Muthoot Bankers to mobilize large amounts of deposits from thepublic over the last five decades. Muthoot Bankers has over 100 branches all overKerala and Tamil Nadu with more than 300,000 account holders.
Total fund based operations of Muthoot Bankers exceeds Rs. 2,500 million.
The fixed deposits collected have been intelligently deployed into productive areas.
Testimony to the Bankers' ability to efficiently deploy funds is backed by theirexistence since 1939 and is to be viewed in the light of the fact that many a finance
company and private banker in the state of Kerala had to close down due tomismanagement of funds and lack of investor confidence. The more than five decadesof experience in private banking has given the Group the necessary strength andexpertise to diversify into value based corporate financial services and capital marketoperations.
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Maintaining international banking standards:
Courteous service and personalized attention has made every customer a lifelong
friend.
Customer oriented services
Gold loans facility available at all branches
1.Loans upto Rs. 2700* per sovereign (* subject to fluctuations in themarket value)
2.Total automation for hi-speed disbursement.
3.Simple formalities.
4.Relaxed terms for shorter periods.
5.Ideal for business people.
6.Customer friendly timings - disbursement upto 5 p.m.
Safe Deposit Lockers facility available at the following branches
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Kozhikode, Chennai, Coimbatore,Ernakulam ,KottayamPalakkad , Peroorkada (Thiruvananthapuram)Sasthamangalam (Thiruvananthapuram) M.C.Road
(Thiruvalla)
MUTHOOT REAL ESTATE
Prime assets:
Muthoot Towers, Muthoot Centre, Muthoot Shopping Centre, Muthoot ShoppingArcade.
Successful development of commercial properties has been the forte of this division ofthe Group. Muthoot Estate Investments has todate developed 1,14,000 square feet ofcommercial shopping space strategically located in the nerve centers of business inleading cities of Kerala.
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Muthoot Towers
Details:
Six Storied Building
The Regional Office of the Muthoot Group of
Companies
Ground floor is used as commercial space
Upper floors are Office spaces
Building has two elevators
Each floor is self-contained and is provided with
amenities for the staff
Basement floor has parking space for 20 cars
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Muthoot Shopping Centre, Kayamkulam
Details:
Two storied building
The Kayamkulam branch of Muthoot Bankers is housed in the upper floor
Each floor is self-contained and is provided with amenities for staff
The basement floor has parking space for 15 cars
The total plinth area is 3800 cubic meter
Muthoot Shopping Centre Arcade, Ulloor, Thiruvananthapuram
Details:
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Two storied building
Ground floor is to be used as commercial space and is for outright sale
The Ulloor branch of Muthoot Bankers and the office of the Group Company M/s.Muthoot Motors (Pvt.) Ltd. are housed in the upper floor
Each floor is self-contained and is provided with amenities for staff
The basement floor has parking space for 10 cars
MUTHOOT CINE ENTERPRISES
Muthoot Cine Enterprises brings alive the magic of cinema through the marvel ofDTS technology
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The fact that almost all major international feature films came with a digitallyrecorded sound track, was successfully used by DTS: Digital Theatre Systems, US, tocreate its own niche in this segment. This gives the option of taking the digital soundtrack completely off the film and providing it on a separate CD-ROM.
In the DTS Surround Sound System that has been installed during 1996, in leadingCinema Halls in the Indian Metros, the 6 tracks of Digital Audio, stored on the CD-ROM, are read by a special playback unit which synchronises the sound with a specialtimecode track recorded on the film.
Repeated good collections for movies screened at Kripa, Muthoot Cine Enterprises'
movie house in Thiruvananthapuram, Kerala stand testimony to the positive andoverwhelming response by movie buffs to the marvel of DTS (Digital TheatreSystems) technology.
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MUTHOOT CAPITAL SRVICES LTD., (MCSL)
Muthoot Capital Services Ltd., (MCSL) is a public limited Non Banking FinancialCompany registered with the Reserve Bank of India and listed in the Cochin,Coimbatore and Bombay Stock Exchanges.
Promoters
The promoter of MCSL is the Muthoot Pappachan Group who have been in thebanking business since 1939. Muthoot Bankers, the flagship organization of theGroup has been able to mobilize large amounts of deposits from the public over thelast five decades based on the trust invested by the public in the Group.
Management
The Board of Directors of MCSL comprises of:
Muthoot Mathew M Thomas (Pappachan) - Chairman
Thomas Kuruvilla - Managing Director
Thomas George Muthoot - Joint Managing Director
A.P. Kurien
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Philip Thomas
Thomas John Muthoot
Thomas Muthoot
Profile
Date of incorporation
February, 1994
Place
Kerala, India
Objective
Providing value based financial services to the corporate sector of Kerala andengaging in capital market operations.
Customer confidence indication
To augment its fund base, MCSL came out with a public issue in February, 1995. The
issue was oversubscribed by 8.5 times - at a time when the Indian Capital Market wassluggish. Almost the entire subscription was received from the state of Kerala, whichwas a record of sorts as traditionally, Kerala is not known to be primary marketfriendly. MCSL has also diversified into fund and non-fund based activities layingequal emphasis on the corporate and non-corporate sectors of Kerala
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Computers
Consumer Items
Certification from the Reserve Bank of India
MCSL has recently been accorded a certificate from the Reserve Bank of India forhaving complied with the requirements regarding credit rating and prudential norms.This certificate paves the way for the company to raise and deploy much larger
amounts of funds and also permits it to pay the appropriate rate of interest on thedeposits collected.
Extensive network of offices
MCSL, through its own Branches and the Branch network of Muthoot Bankers is in a
unique position to provide its financial services and products throughout the lengthand breadth of Kerala.
MCSL has its registered office in "MUTHOOT TOWERS", M.G. Road, a landmarkin Cochin. MCSL has 12 branches in Kerala.
Also, all Kerala branches of Muthoot Bankers are authorized to act as collectioncenters for MCSL. The shares of the company are listed on the stock exchanges ofCochin, Coimbatore and Bombay.
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SUMMARY
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CHAPTER - 3
RESEARCH DESIGN
AND
METHODOLOGY
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Chapter Summary -----------------------------------------------------III-22
CHAPTER OVERVIEW
This chapter will start with the restatement of the problems and hypothesis. The
problems will
be spelled out and the need for this kind of study will be discussed. The researchdesign will include
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planning of a market research project, the resources required, methods used for fieldwork program,
questionnaire design and type of questionnaire used.
Finally we will discuss the assumptions that are made along with reasons for makingthem.
Moreover, we will ponder over the limitations that go along with the study.
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RESTATEMENT OF THE PROBLEM AND HYPOTHESIS
The size of the global market for ceramic sanitary wares is indeed large. The globalmarket for ceramic sanitary wares is large, however Indian presence is limited. There
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is scope for increasing Indian presence and the reasons for the dismal performancewill be looked into.
Once the selection and definition of the problem have been accomplished, thederivation of the hypothesis is the most important step in the research process. Thehypothesis is a powerful tool in research process to achieve dependable knowledge. Ithelps the researcher to relate theory to observation and observation to theory.
The null hypothesis of the present study is," The Indian exporters are not able tomatch foreign technology and quality of ceramic sanitary wares available in theinternational market ".
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How will we persuade the consumers to buy our products rather than ourcompetitors'?
Evaluation:
Can we increase sales of our product?
Can we charge more for our product?
Can we supply to a different group of consumers?
Should we change the way we get the product to customers?
Should we change the way the product is offered?
Problem Solving:
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Market segmentation by area, customer grouping, needs or requirements.
Trends - whether it is a growing or declining market?
The Market's Structure:
The major players - domestic manufacturers, importers.
Branding
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The Product:
Types of products within the market
How the products are differentiated
Relationship of products to market segmentation
Level of product innovation
Product Life Cycle - how long they last?
How the product meets customers' needs?
Customer's satisfaction with products
The need to develop/change the product
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Pricing:
Current pricing structures
Past trends
Customers' price expectations for a product
Anticipated changes in purchasing following price changes
Sales Method:
Customers' attitude to the methods used
Evaluation of different methods
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Relating market potential to sales organization
Sales organization and market structure
Advertising:
Evaluation of advertising campaigns
Audiences reached by advertising media
Testing new advertising before / after use.
Relationship between advertising and product / brand perceptions
This section shows a wide range of information required to address a problem.However the process of obtaining information is to help you to arrive at a decisionand not to serve as an alternative to decision making.
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IMPORTANCE OF EXPLORATORY RESEARCH DESIGN
An exploratory study is used for the following purposes:
1. Formulating a problem for more precise investigation or for developinghypothesis.
2. Establishing priorities for further research
3. Gathering information about the practical problem for carrying out research onparticular conjectural statements.
Flexibility and informality characterize exploratory research. Explanatorystudies rarely use
detailed questionnaires. Ingenuity, judgement and good luck play a part in suchstudies. Not withstanding the flexibility the research experience has demonstrated that
I literature surveys
II experience surveys
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III analysis of selected cases
are particularly productive in exploratory research.
DESCRIPTIVE RESEARCH:
We should also recognize the existence of many studies whose results are descriptive,not conclusive. Most governmental and academic marketing studies probably fallwithin this category. For, example a professor or doctoral student makes a study of"Food Brokers: Their nature and functions", which is a research but descriptive innature.
Descriptive studies investigate phenomena in their natural setting. Their purpose is
both immediate and long range. They constitute a primitive type of research and donot aspire to develop an organized body of scientific laws. Descriptive research differsfrom other research in purpose and scope.
STEPS IN DESCRIPTIVE RESEARCH:
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Selection or Development of Tools
The nature of the data to be collected helps the researcher to select the appropriate
tools for the study. Questionnaires, interviews, psychological tests, rating scales,schedules and attitude scales are the most frequently used tools for descriptiveresearch. If the researcher uses ready-made tools, he should satisfy himself about theirreliability, validity and suitability for sample chosen for the study.
Selection of the sample
The researcher must select the sample about which he wishes to seek informationusing appropriate sampling techniques. The sample selected should adequatelyrepresent the population.
Collection of Data
The researcher should specify the practical schedule for gathering the data from thesample selected for the study with the help of appropriate tools.
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A statement of research objective should describe what would be achieved bycarrying out the research. These objectives should meet the businessrequirements covered in the analysis stage.
Our research objective is to study the problems in the international marketingof ceramic sanitary wares manufactured by Muthoot APT Ceramics Ltd.,Cochin.
2. Information needed to meet the objective
It is important to distinguish between the information needed to meet theobjective and the objective itself. The objective is a statement of anintention to provide data relevant to a marketing problem, but in itself itdoes not indicate what the research must find out. The research project isconstrained by both time and costs, and it is but natural that somecompromises will have to be made in the depth and breadth of theinformation we propose to cover.
4. Research methods
This element of the plan describes how the work will be carried out. Thesources of research information are conveniently classified as eitherprimary or secondary. An understanding of what can be obtained
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through desk research, how to plan fieldwork, the role of questionnairesand how to use them in interviewing is all needed in before researchmethods of a plan can be written.
Secondary information is the one that has already been collected usuallyfor some purpose quite unconnected with our requirement. Primaryresearch on the other hand is needed to collect factual information torefine the data that is uncertain or too broad. Quantitative data isconcerned with understanding the subjects of the research from within; itis very much concerned with attitudes and motivations.
Resources required
Market research in most respects is labor intensive and outside data analysis(especially processing of questionnaires, which is beyond the impact of informationtechnology. Time factor is the most important element for any market researchproject.
1. Desk Research
Generally two man-days spent in a library supplemented by telephone 'overview'interviews would produce the data.
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2. Telephone interviews
The number of telephone interviews that can be carried out in a day is often moredependent on the time needed to locate appropriate respondents than on the length ofthe interview itself. Lengthy questionnaires are costly to be administered ontelephone.
3. Face-to-face interviews
Considerable time is spent on travelling. If the respondents are scattered it may provetoo costly. If the respondents are geographically concentrated and easily accessible,then this type of interviewing is beneficial.
4. Postal surveys
They can be employed when the responses are not subject to time constraints. Sincetime is a key factor in market research projects, the same may not prove beneficialhere.
Non-interviewing methods:
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Postal survey
Observation
Face to face interviewing involves a meeting between the person collecting the dataand the person giving it for consumer research. Our area of interest in face to faceinterviews is business to business research, which are mostly carried out in therespondent's work place. For quality information, in-depth information is needed. Inbusiness to business research the respondent's view reflects the view of the
organization.
Telephone interviews can be carried out in both consumer and business to businessresearch; either as a stand-alone method or in conjunction with visits or a postalsurvey. Combining a postal survey with telephone interviews can overcome somelimitations of each individual method. Observation is another non-interviewing
fieldwork method.
In this study the interviewing was face to face at the respondent's work place.
Selection of Appropriate Fieldwork Method:
We now consider when and why to use one fieldwork method rather thananother.
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respondents. Likewise when a product has to be shown or tested, then a hall isrequired unless a home placement is more appropriate. In our study, theManaging Director of MACL was interviewed face to face at his office.
4. Resources:
This is concerned with practical constraints and they may result incompromises on either method or fieldwork used or on samplingprocedure. The ideal research method may not be feasible owing to theaffordability criterion.
Strengths and Weaknesses of
the three contact methods
PERSONAL MAIL TELEPHONE
1. Flexibility Excellent Poor Good
2. Quantity of data
that can be collected Good Fair Excellent
3. Control of interviewer Excellent Fair Poor
4. Control of sample Fair Excellent Fair
5. Speed of data
collection Poor Excellent Good
6. Response rate Poor Good Good
7. Cost Good Fair Poor
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Types of Questions
A.CLOSED-END QUESTIONS
Name Description
Dichotomous A question offering two answerchoices
Multiple choice A question offering three or moreanswer choices
Lickert Scale A statement with which the respondent
shows the
amount of agreement/disagreement
Semantic A scale is inscibed between two bipolarwords,
Differential and the respondent selects the point that
represents the direction and intensity of his or
her feelings.
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B. OPEN- END QUESTIONSName Description
Completely Unstructured A question that a respondent can answer in an
almost unlimited number of ways.
Sentence completion Incomplete sentences are presented and the
Respondents are asked to complete it.
Story completion Incomplete story is presented and the
Respondent has to complete it.
Thematic Apperception A picture is presented and respondents are asked
Test (TAT) to make up a story on what they think is
happening or may happen.
GENERAL PRINCIPLES OF QUESTIONNAIRE DESIGN:
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Avoid unreasonable questions. The respondent should not be forced intoguesswork.
Avoid 'loaded' questions. Loaded questions are biased and may elicit inaccurateresponses.
4. Fine tuning the questionnaire
Once the draft copy is prepared, revise it for corrections keeping in mind the featuresof a good questionnaire and by steering clear of the pitfalls in questionnaire design.The order of questions is adjusted to enhance the flow and ambiguous questions areremoved. A test or dummy run of the questionnaire is advisable and it can be timed toarrive at the average time required to finish the questionnaire.
Fine-tuning of the questionnaire will flush out the weaknesses in the questionnaire in
terms of the meaning of questions or length of questionnaire or its flow.
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DESCRIPTION OF RESEARCH DESIGN OF THIS STUDY
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The research design is the major blue print according to which the result is to be
conducted. The research design specifies the methods of data collection and dataanalysis.
In the preliminary phase exploratory research was conducted to obtain a proper
definition of the problem at hand. It helped in formulating the hypothesis for furtherresearch. The study also makes use of descriptive research in order to analyze theproblem and come up with solutions.
Sources of data included both internal as well as external. Primary data was collectedusing questionnaires and by fixing interview schedules at the respondent's work place.Secondary data was collected from magazines, journals, textbooks, newspapers,Internet web sites etc.
Non probability sampling was used. The researcher has used judgment sampling tochoose the elements of the sample. The sample size is 25% of the population.
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METHODOLOGICAL ASSUMPTIONS AND LIMITATIONS
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ASSUMPTIONS
Data was collected from the customers by using both the questionnaire method andthe observation method
It is hoped that the sample size portrays the true picture.
The questionnaire and interview methods were employed to gather data.
LIMITATIONS
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Due to time and money constraints the sample size is limited and probably notenough.
Due to the large International market and dispersed market players, the attentiondevoted to each player may not be sufficient.
The data gathered may be biased in favor of the respondents.
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Summary
This chapter starts with the chapter overview wherein a briefing of the entire chapteris made.
The problems and hypothesis is restated. The problems are spelt out and the need forthe study is discussed.
The research design is thoroughly explained. It includes a plan of a market researchproject, the resources required, methods used for fieldwork program, questionnairedesign and type of questionnaire used.
Finally the assumptions that are made along with reasons for making them arementioned.
The limitations that go along with the study are listed.
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CHAPTER - 4
SOURCES
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OF
DATA
CONTENTS OF CHAPTER - 4
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PRIMARY DATA
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Primary data can be expressed in simple terms as information collected for thespecific purpose at hand. Good decisions require good data. Just as researchers mustcarefully evaluate the quality of secondary information they obtain, they must alsotake great care in collecting primary data in order to gather relevant, accurate, current,and unbiased information.
Planning Primary RESEARCH CONTACT SAMPLING RESEARCH
Data Approaches APPROACHES METHODS PLAN INSTRUMENTS
Observation Mail Sampling unit Questionnaire
Survey Telephone Sample size Mechanical instruments
Experiment Personal Sampling procedure
Interview Planning:
Having decided on the size of sample required and the method of data collection to be
used, the interview schedule can be ascertained. The quality of market researchgreatly depends on the questions asked and the responses elicited. The followingpoints may be noted:
Be pleasant.
Assure the respondent of the genuineness of the research.
Don't beat about the bush.
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Explain what is required of the respondent.
Adopt a positive approach.
First impression is the best impression; therefore the first few minutes areparamount for the success of the interview.
Ensure the accuracy of responses obtained.
Stick to the prepared questionnaire.
Respect valid objections.
The questionnaire designed for collection of primary data elicits responses on thefollowing:
Pricing mechanism adopted
Specific Markets for the products
Market strengths and weaknesses
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available from secondary sources, either within or outside the organization, that canbe a fine economy. Sources of existing data should be practically exhausted beforeseeking original data.
Uses of Secondary Data
1. A prerequisite to the conduct of marketing research is an adequateunderstanding of the problem situation. This understanding typically isbased to a large extent on secondary data.
2. Further use of secondary data often is in exploratory search forhypothetical solutions to the problem, suggested or inspired by others'publications and data.
3. In carrying out conclusive research to verify the expected effect ofhypotheses under consideration, several uses may be made of secondarydata. One is examining the methods employed in studies of similarnature for guidance in a project design to gather primary data.
4. Secondary data are essential in planning the sample from which primaryinformation is to be obtained. They may be used to describe the targetpopulation that is to be sampled, as parameters and guides in the actualsample selection process, and as bases for validating the obtainedsample.
Sources of Secondary Data
Internal sources
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Internal sources include company profit and loss statements, balance sheets, salesfigures, sales call reports, invoices, inventory records, and prior research reports.
Government publicationsVarious press releases and Government Gazettes provide information of secondarynature.
Periodicals and booksVarious export magazines, business publications like Business week e.t.c, are a storehouse of information.
Commercial Data
There are numerous commercial houses selling data to subscribers.
The secondary data for this study was obtained from Business magazines, Exportjournals and other sanitary wear literature.
The sales performance of a company is partly due to its marketing efforts in acompetitive environment and partly due to the result of trends within the market.
Plotting a Company's sales over time may give an idea of the shape and movement ofthe market. Every company should make an effort to track its performance against thesize of the market and in doing so plot its market share. Changes in the market sharesare signal for action. An increase in market share may mean that a promotionalcampaign is working, the competitor is on a decline or product is priced too low. Adecline in market share may mean that a product has been usurped by the competition,that competitors are more aggressive in their marketing, distribution channel is too
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poor or prizes are too high. In any case, plotting the Company's sales against themarket should raise questions and it may prompt an investigation. Thus your ownCompany as a source of information is very important.
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Merits of secondary data
a. Secondary data is unbiased. It is in no way affected by the objectivity of theresearcher.
b. The secondary data obtained for research purposes are more economical thanprimary data.
Limitations of secondary data
a. Finding data to suit the specific project is cumbersome.
b. It is tiresome to find data of known accuracy
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Selecting a survey technique
The seven major factors involved in selecting a survey technique are
Cost of collecting the data
Speed of getting desired response
Accuracy of the data
Amount of data gathered
Response rate
Flexibility of the technique
Degree to which sample represents the population
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SAMPLING PROCEDURE
It would be impracticable, if not impossible, to test, to interview or observe each unitof the population under controlled conditions in order to arrive at principles havinguniversal validity. Some populations are so large that their study would be expensivein terms of time, money, effort, and manpower. Sampling is the process by which arelatively small number of individuals or measures of individuals, objects, or events isselected and analyzed in order to find out something about the entire population fromwhich it was selected.
The representative proportion of the population is called a sample. To obtain arepresentative sample, the researcher selects each unit in a specified way undercontrolled conditions. Usually four steps are involved in the process:
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1. Defining the population
2. Listing the population
3. Selecting a representative sample
4. Obtaining an adequate sample
Generally larger the sample, the greater the accuracy, provided it is selected in anappropriate way. Diminishing returns apply, however, and the increased accuracyfrom additional interviewing may be very small and not worth paying for.
The ideal sample is generally drawn randomly. In fact, pure random sampling is veryrarely used. This applies to this study also, because cooperation from the respondent'spart is essential.
The target population or universe in this study is made up of all the ceramic sanitaryware manufacturers who engage in exports. The entire population consists of about 20known ceramic sanitary ware exporters. The number of respondents included in thisstudy is 5, which amounts to 25% of the population.
The researcher has used Non-probability method of sampling. Judgment sampling isused to purposefully select the specific members of the sample in a random method.The researcher according to his judgment has chosen the members of the sample thatwould constitute a proper cross section representing the parameters of pertinence tothe research.
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A listing of every element in the population or universe would constitute a perfectsampling frame. In reality, though, most sampling frames are found to be far fromperfect, owing to omissions, incomplete data, and outdated information. The samplingtechniques used in this study may also suffer from any of the above mentioneddefects. Since, it is practically impossible for a smaller segment of a population to be
exactly representative of the population, some degree ofsampling errorwill bepresent whenever we select a sample. This error is the result of chance. Non-samplingerror is everything else besides sampling error that may inject inaccuracies and biasinto the results of a study. It goes without saying that the study may have non-sampling errors but every step has been taken to minimize non-sampling errors.
CHAPTER - 5
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PRESENTATION
OF
TABULATED DATA
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Classification of Data
Classification is arranging the data according to points of similarities anddissimilarities. The common types of classification are quantitative, geographical andchronological. The objectives are:
1. To prepare data in to homogeneous groups.
2. To prepare data to be presented in tabular form
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3. To condense the mass of data in such a way that its salient features arehighlighted.
4. To facilitate comparisons between variables
Data are classified into primary and secondary. Primary data is collected formeeting the specific objectives of research study. Primary data is collected formeeting the specific objectives of research study. The primary data is mainlycollected by using questionnaires.
Secondly data is defined as data collected earlier for a purpose other than onecurrently being pursued. Data which is available prior to the commencement ofa research study is secondary data. The data classified here is primary datacollected from sources.
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Shape 2
Others 1
Price 40%, shape 40%, and other factors 20%
Table 5A
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Countries to which exports have failed:
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Serial No. Name of the country
1. South Africa
2. China
3. Namibia
Table 5B
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Reasons for failure of exports to these countries:
S.No Reasons No of respondents
1. Low prices 2
2. Low demand forquality products
2
3. Others 1
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Table 5A1
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Promotional Inputs:
S. NO Promotional Inputs
1. Product brochures
2. Product leaflets
3. Floppy disks
4. Internet Web sites and home pages
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Table5B1
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Price mechanism adopted for the international market:
S.No Price mechanism No. of respondents
1. Uniform prices pegged tothe U.S.$
0
2. Different prices fordifferent markets
5
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Table 5C
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Whether marketing research is conducted on an ongoing basis?
Query result No of respondents
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Yes, marketing research is conducted onan ongoing basis to identify changingcustomer preference
5
No, marketing research is not conducted
on an ongoing basis to identify changingcustomer preference
0
Table 5D
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S.No Common Problems
1. Resistance to Indian products
2. Freight charges
3. Breakage in transit
4. Rapid changes in design and
5. High Research and development costs
Table 5C1
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CHAPTER - 6
ANALYSIS
AND
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INTERPRETATION
OF
THE DATA
Analysis and interpretation of data:
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it is evident that price and shape of the sanitary fittings are the most important factorsinfluencing buying decisions.
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From the responses received the three countries to where exports have failed areSouth Africa, China and Namibia. The reasons given for this are that the demand forluxury items is low and the price of the sanitary wares in the domestic markets are toolow and Indian manufacturers do not find it feasible to export quality products at thatprice.
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Table 5D Whether the respondents carry out Marketing Research at regular intervals?
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Table 5A1 Reasons for failure of exports.to South Africa, China and Namibia.
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Table 5B1 Various promotional inputs used by the exporting companies
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According to the responses received the promotional inputs of the various ceramic
sanitary ware-exporting firms include the following:
Product brochures Product leaflets Floppy disks and Internet Web sites and home pages.
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Table 5C1 Problems faced by the ceramic sanitary ware manufacturing companieswho export
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CHAPTER - 7
RESULTS
OF
THE STUDY
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CHAPTER - 8
SUMMARY
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Table 5A Factors influencing buying decision
Out of the 5 respondents, 2 have agreed on the price of the products and 2 on theshape of the products and 1 has mentioned other factors. From the responses collectedit is evident that price and shape of the sanitary fittings are the most important factorsinfluencing buying decisions.
Table 5B Countries to which exports have failed
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Low prices Low demand for quality products
Table 5B1 Various promotional inputs used by the exporting companies
According to the responses received the promotional inputs of the various ceramicsanitary ware-exporting firms include the following:
Product brochures Product leaflets Floppy disks and Internet Web sites and home pages.
Table 5C1 Problems faced by the ceramic sanitary ware manufacturing companieswho export
There are a few common problems faced by the companies engaged in themanufacture and export of Indian ceramic sanitary wares. Some of the prominent onesinclude the following:
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CHAPTER - 9
CONCLUSIONS
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The study has revealed that:
The Indian ceramic sanitary wares produced for export are not inferior to thatof those produced by international players.
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The quality standards of Indian export merchandise are high.
The Indian Government offers encouragement to export firms on continuosbasis.to boost exports.
There is a large market for ceramic sanitary wares
The Indian ceramic industry has good growth prospects.
As there is great scope for growth, the ceramic industry can accommodatemany more players. This can be explored and exploited by interestedentrepreneurs.
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CHAPTER - 10
RECOMMENDATIONS
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Recommendations:
With the proper understanding of goals, policies and actions of countries globally, theexporters have to develop a culture of devising their own specific goals, strategies andpolicies. India, as a country, may have to meet the cost of getting into global strategicalliances and market chains, achieving the necessary market share, for whichcompanies must grow. Thereby, the government can better equip the exporters to dealwith the international competition.
Marketing Strategies:
Packaging:
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Packaging plays a great role in product safety but above all, good packaging createsinstant consumer recognition of the company or brand. Packaging also gives the firstimpression of the product to the customer. A well-packaged item is always associatedwith a good manufacturer. After selecting and introducing a package design, thecompany should check the packaging concept in the face of advances in technology
and change in consumer preferences.
Overseas Market Surveys:
The tastes and preferences of the consumers are bound to changes. In keeping withthis notion, MACL should not produce standardised products but indulge ininnovative products.
To ascertain the needs of the customers, overseas market surveys are to be conductedat regular intervals through efficient agencies.
Tailor made products:
The need for tailor made products is assuming significance in the present worldmarket scenario. MACL should be in a position to tap this market by offeringproducts tailor made to the needs of the customer, thereby enhancing the prestige ofthe company and tapping a fast growing market.
Strategic alliances:
Better market access is possible by establishing strategic alliances. The strength ofdistributionis crucial in deepening and widening market penetration. Thereforeinstead of building a distribution channel and logistics, using up a developed onethrough alliance will be more appropriate.
Image Building:
The image building exercise is to be viewed as a process. The international marketdoes not have a favorable impression of most Indian goods. An image buildingexercise will go a great way in promoting the standards and quality of Indian products
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in international market. The next step would be to tackle the problem of"facelessness" of Indian products. Finally, the Indian manufacturers will be in aposition to place the