global marketing presentation on mobile

8/14/2019 Global Marketing presentation on mobile

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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/


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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/


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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/


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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.pdf


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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.pdf


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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