abhishek, sahil, ashish

8/7/2019 abhishek, sahil, ashish

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INTERNATIONAL MARKETING

When a firm decides to operate across

national boundaries, there arises the needto apply its marketing principles to thetarget country, for business success. This is

called International marketing.


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KEY DECISIONS

Choice of which overseas market to enter. Whether or not to enter overseas market.

Choice of market enter strategy.


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WHY ENTER OVERSEAS

MARKET???

The reasons for marketing abroad can be

classfied as : PUSH FACTORS:

Constraints in the home market pushing thefirm to seek overseas market.e.g

1.Saturation in the home market.

2. To extend the product life cycle.

3. to reduce dependence on home market .

4. Intense competition in home market.


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PULL FACTORS

To exploit business opportunity.

Growth potential in overseas market

To grow the firm

To benefit from economies of scale-reduction

in unit cost.


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International Marketing Example: The Case Of

Starbucks Corporation

The aim of the organisation was to become a worldwide

global brand. Starbucks advertising strategies played a crucial

role in the success of the business. The advertising strategies

adopted by the firm are more local and differentiated rather

than standardized. It had done the swot analysis for extending

as:


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STRENGTHS

Starbucks is No. 1 specialty coffee retailer of - in terms ofmarket share and market capitalization.

It is a global organisation with 16,000 coffee shops in 15countries world-wide.

Strong brand image associated with high quality coffee andexcellent customer service - The Starbucks Experience.

The company franchises and licenses 6,500 shops. It hasdeveloped excellent skills in franchise management.

Due to its specialism in coffee - it achieves high buyingvolumes - scale economies and utilizes internationalsourcing


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WEAKNESS

Starbucks is a premium brand commanding premiumprices. As competitive pressures increase, the company

could be undercut by lower price rivals such as McDonaldsor Costa Coffee.

Starbucks is seen as an American Global, possibleperception that big American chains are trampling onnational cultures, Starbucks was trampling on Chinese

culture. Over-dependency on coffee and coffee related products.

Reputation with pressure groups. Criticized for not using moreFree trade products


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OPPORTUNITIES

Significant opportunities exist, especially outside domestic USmarket for joint ventures. Starbucks could overcome planning

restrictions, reduce costs through co-locating at supermarketchains, pubs & restaurants.

Product range diversification into greater food ranges and non-fooditems.

Licensing its name (e.g. ambient coffee through supermarkets)could provide new streams of revenue.

Through CRM and database marketing it could target its high networth customers and build greater loyalty with customer base. Theintroduction of loyalty schemes such as Starbucks Card.

Become more of a socially responsible brand. Better public relationsactivity, introducing more fair trade products, better distribution ofprofits to farmers and ethical sourcing practices.


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THREATS

Possible saturation in the coffee, caf market. In the US,600 underperforming company-owned stores wereeliminated from the business..

Several activist groups maintain websites criticizing thecompanys fair-trade policies, labour relations, andenvironmental impact.

Recession or downturn in the economy affects consumerspending, with less disposable income to spend.

Raw material cost rising - Starbucks is exposed to rises inthe cost of coffee, labour and dairy products, and adversechanges in exchange rates.


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EXIM POLICY


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Exim Policy or Foreign Trade Policy is a set of

guidelines and instructions established by

the DGFT in matters related to the import and

export of goods in India.

EXIM Policy of the Indian Government is

regulated by the Foreign Trade Development and

Regulation Act, 1992.DGFT (Directorate General of Foreign Trade) is

the main governing body in matters related to

Exim Policy.


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OBJECTIVES

To accelerate the economy from low level ofeconomic activities to high level of economicactivities.

To generate new employment.

Opportunities and encourage the attainmentof internationally accepted standards of

quality. To provide quality consumer products at

reasonable prices.


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EPCG SCHEME

EPCG scheme allows import of capital

goods for pre production, production and post

production at 3% Customs Duty, subject to an

export obligation equivalent to 8 times of

duty saved on capital goods imported under

EPCG scheme, to be fulfilled in 8 years

reckoned from Authorised issue-date.


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Special Economic Zone SEZs in India

SEZ is basically a geographically distributed areaor zones where the economic laws are moreliberal as compared to other parts of the country.

A SEZ may be set-up in the public, private, orjoint sector and /or by a state government andeven by a foreign country.

The minimum land area requirement forestablishing a SEZ is 1000 hectares. Out of thistotal area, only 30-35% of area is used for settingup plants and rest of the area is used to providehousing facilities, malls, multiplexes etc.


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Promotional Measures

Scheme for Assistance to States forInfrastructure Development of States forExports (ASIDE) is formulated to encourage

participate in promoting exports, and isadministered by Department of Commerce.

Developing infrastructure such as roadsconnecting production centers with ports.

Setting up of Inland Container Depots (ICD)and Container Freight Stations (CFS).


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India New Exim Policy 2010 - 2011

Highlights.

Higher Support for Market and Product

Diversification :

256 new products added under FPS (at 8 digit

level), which shall be entitled for benefits @

2% of FOB value of exports to all markets.


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Support for Technological up-

gradation

Zero duty EPCG scheme.

EDI Initiatives:Additional licensed certifying authorities for

digital signatures and banks for electronic

fund transfer (EFT) operations have beenincluded in the gamut of EDI operations.


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Financial Institutions

Is an Institute that provide Financial Services for

its clients or members.


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Types of Financial Institutions

Deposit

Insurance companies & Pension funds

Brokers, Investment funds


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Role of Financial Institutions

In an international market every business

needs a strong link between the seller & buyer

for easy financial transactions.


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Banks

abhishek, sahil, ashish

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