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
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