INTERNATIONAL MARKETING ASSIGNMENT
Apple iPhone 4 in Bangladesh
Marketing Plan
Due Date: 19 January 2013
Word Limit: 4000 words written report.
Font: Times New Roman, Font Size: 12
Referencing Style: APA Format with in-text Citations.
Use a marketing plan report format, which must include an Executive Summary, Table of Contents, All detailed sections of the marketing plan, References and Appendix (charts and graphs related to the Report), and some pictures of the product inside the report– this is intended to be a professional quality document. The referencing must include at least 2-3 books, 2-3 articles, Website links, 1-2 journals and it should be in APA style with proper in-text citations.
Student is required to prepare a detailed marketing plan (implementation plan) for entry of a single product (iPhone 4) into a single foreign market (Bangladesh)
In this report, some of the more important areas to be addressed include:
1. What are your objectives with the penetration of the market?
2. Assess the strengths/weaknesses and opportunities/threats that need to be considered.
3. What strategies are going to be adopted?
4. Operationally, how will the company (Apple) function? What does the supply chain look like?
5. How will human resources be marshalled?
6. What mode of entry are you choosing (and why)? Please put
7. Outline in detail how you propose to deal with the key macro environmental issues in Bangladesh in relation to the entry iPhone 4 in Bangladesh. Be specific. DO NOT JUST DESCRIBE THE ISSUES, RELATE IT TO the entry iPhone 4 in Bangladesh.
8. Specifically, how are the marketing mix variables (4Ps: Product, place, price, promotion) going to be utilised?
9. How will the venture be funded? Provide a budget and break-even estimate.
10. How would you adapt (or not) the product (iPhone 4) to meet the needs of the target markets? (The product/service cannot currently exist in the market chosen)
11. How will you address the challenges? (Challenges: No Apple Store in Bangladesh, Cheap competitors like Nokia, Symphony are ruling over there, No Production Facility in the whole Indian Sub-continent hence preliminary cost will be much higher for the company)
12. Create a sense of vision for your project by briefly considering the next steps once your product (iPhone 4) has been launched into the country of choice. (Bangladesh)
13. Make the project as realistic as possible – will the strategies really work in the market chosen?
MARKING GUIDE
Structure (3 MARKS)Appropriate length
Appropriate business report sections
Format/set out
Executive Summary
Style (3 MARKS)
Spelling and grammar of academic standard
Writing is clear and concise
Clear and logical progression
Content (12 MARKS)
Objectives
SWOT
Strategies
Operations/supply chain
Marketing Mix (4P's)
HR considerations
Standardisation/adaptation
Budgeting
Challenges addressed
Future vision
Referencing (2 MARKS)
Format of in-text citations correct
Reference list broad and appropriate
Bibliography format correct (APA)
STUDENTS CAN FOLLOW THE BELOW FORMAT BUT IT must include an Executive Summary, Table of Contents, All detailed sections of the marketing plan, References and Appendix (charts and graphs related to the Report), and some pictures of the product inside the report.
SAMPLE ASSIGNMENT
REVLON PRODUCTS IN CANADA
1. Introduction
International marketing is a process of planning and undertaking transaction across national boundaries that involve exchange (Doole and lowe 2001). The international marketer is subject to a different set of macro environmental factors deriving from different political systems, legal framework, cultural norms and economic circumstances. For example, electronics from China, fruits and dairy products from New Zealand, Rice from India, furniture from Scandinavia, are occupying a significant share of the market along with the local products. According to the data provided by Rowena McNaughton, (2009) Australia imported $190 million are textile and clothing products globally in 2008, which are majority from China.
1.1. Background
Revlon was founded in 1932, by Charles Revson and his brother Joseph, along
with a chemist, Charles Lachman, who contributed the "L" in the REVLON name. Starting with single product nail enamel Muhammad 2007. Revlon is the world’s reknown company. The company vision is to provide glamour to customer through high quality product with an affordable price. These days fashion and beauty industry is flourishing therefore Revlon has huge range of product and sells a variety of cosmetic like hair color, beauty tools, skin care, and fragrances, age defining. The company believes that its global brand name recognition, product quality and marketing experience have enabled it to create one of the strongest consumer brand franchises in the world.
1.2. Purpose
The aim of the report is to prepare a detailed market plan for the entry of a product or service in to a single foreign market. This marketing plan concerns the entry of Revlon into Canada.
The report analyses the objective for entering the market assessing the strengths, weakness opportunities and threats along with the strategy recommendation. The report projects the control and management of company function and human resource. The report also outlines macro environmental issues to deal with the market; the utilization of marketing mix variables and also company’s breakeven point along with the funding process is discussed. Moreover, the report discussed the target market and view of matching the needs of target market. There are recommendations for addressing the challenges for introducing the Revlon product to Canada market with Company’s future vision.
Macro Environment Analysis
The macro environment includes all the factors which are external to the firm and which cannot be controlled by the organization and also they are not specific to any industry but influences all the firms but the influence may be at different levels. The important factors comprising the macro environment of marketing are economical, socio-cultural, demographic, natural, technological and political-legal. These factors are discussed below from the context of Canadian Market.
2.3.1 Economical
The first issue to consider is stability in local economy in relation to the world. As a marketer, one should look at the past trend which will give a good indication of the country’s economy. Level of employment could be another economic indicator to determine a potential customer who has more disposable income and can afford to buy a product (Bradley, F. (2005). When talking about economic factor Canada is a developed country with GDP rate of Canada US$ 39400. In 2010 the world makeup market worth 35 billion which is growth of 4% from 2006. The market is expected to continue expanding at over 4% per year through 2015, bringing the market to over $42 billion. Therefore, as Canada is a developed country the purchasing power of customer will boost.
2.3.2 Social and Cultural
Differences due to cultural and business distance reduce the level of commitment firm’s display to distant marketers (Anderson 1986). Countries which are populated by heterogeneous culture the firm’s activities may be difficult. In order to measure this we can possibly examine the size of largest language and religious group.
Therefore, language, religion, symbol’s, belief’s, value, must be considered by an international marketers when designing or promoting product. The culture in Canada and USA is almost similar as they mostly similar and the social norms they practice are same therefore, there will not any problem regarding this. . For example, McDonalds had to stop its products containing beef as cow is regarded as goddess in India. In recent years there has been a paradigm shift form joint family to nuclear family in India. (Vivid foundation 2011).
2.3.3 Demographic
Demographic consists variable such as age, family size, income, occupation. Revlon focus on the largest demographic market e.g. by showing lipstick in various shades of red (Pitman Simon 208). Consumer wants and needs varies according to age therefore, marketers should design a promote products differently to meet the wants of different age groups in Canada. Putting that in mind Revlon has huge range of product for teen agers and ageing women as well.
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2.3.4. Technology
Use of cosmeceuticals where personal care products are fortified with functional ingredients like aromatherapy or the addition of natural protein and enzymes has been introduced. (Reszko , Berson , Lupo 2009). Not only product composition technology used will also play a vital role in makeover possibilities. As USA and Canada are developed country they can afford it.
2.3.5 Political and legal issues
Business can extremely be affected by changes in political system of the government and policies and regulations. The influence of the political environment highlights the need for careful planning prior to market entry as well as the need for a well thought out exit strategy (Czinkota,M.R & Ronakainen 1992). In some cases marketers find product or organization banned overnight if government decides one is no longer welcome. Therefore, in the country where there is political instability the marketers should try to avoid engaging in business.
In some of the country the product might be banned by the legally and some of the countries might restrict some product with excess chemical. Therefore Canada is a country with stable political condition. Whereas, it is by law we have to have label like expiry date, ingredients, and name before exporting product.
2.2 SWOT Analysis
Strengths· Not animal tested
· First brand to be concerned of animals
· Wider product Portfolio
· Partner with National Breast Cancer Coalition to bring awareness support education and funding.( Lowendick 2008).
· Present in 175 countries.
· They choose successful top model and beauty actress for promotion.
· Online service.
· Same culture / Weaknesses
· Revlon’s product is bit expensive compared to their competitors so it is impossible to buy for low disposable income group.
· Low spending on promotion and advertisement.
· Only 2% spending on research and development.
· High cost of production.
Opportunities
· Revlon can introduce organic product in market as ageing population are more careful with the ingredients used.
· Market growth
· Demography / Threats
· Revlon does not partner with TV shows and gain lots of feedback.
· Expensive
· Eliminates younger market
· Wide range of substitutes.
· Competitors offering wide range of varieties.
· Competition
2. Objectives
According to Alan T. Ennis President and Chief Executive officer Revlon’s strategy is to profitably grow business introducing high quality product, sustained competitive margins. The objectives are market share improvement, increasing reputation, sales growth, risk mitigation and innovation (kotler.et.al 2009). Similarly,
· To secure distribution of product in chemist warehouse, cosmetic retailers by end of March 2013.
· Planned to achieve 5% market share in next 2 yrs.
· Profit is limited to achieve break even in each of next 2 yrs.
· In the next 2 yrs the ROI is set as 10%.
Strategies
The objective with the penetration of market is guided by our vision “Glamour, excitement and innovation through high quality of product with affordable price”. The elements we are focused on are building our strong brands, developing organizational capability, increase our operating profit, improve capital structure, introduce product globally.
· Building Our strong brand
We can build strong brand through innovative, high quality consumer preferred brand offering. Effective brand communication, appropriate advertising and promotion. The new products of Revlon may include innovate idea like long wear nail enamel. DNA advantage makeup.
· Developing Organizational capability
Organizational capability can be strengthen by recruiting talented and experienced individual n organization.
· Improving Capital structure
We improve capital structure by borrowing from bank which will lower cost. Flexible capital structure to continue business strategy.
· Introduce brand globally
We are leveraging brand positioning, portfolio planning and brand communications plans globally, and we are focused on improving our operating efficiency through many activities, including global supply chain management. (Annual Report Revlon 2011).
Utilization of Marketing Mix Variables
Marketing mix is simply an organizational framework, which helps the marketers to consider all aspects needed to satisfy customer need. The most commonly used marketing mix framework is referred to as the 4ps, which is made up of products, price, promotion and place. The company requires adjusting these 4P’s to satisfy customer needs as they have control over these issues by understanding the target market(Kotler 2010). This is discussed below in context with Revlon Canada.
Product
Revlon has always added perfection in their packaging that is why packaging must have label in it with ingredients and dates. Meets individual market requirements. It is a new and very modern product .Different features like moisturizing effect creates differentiation in the product which customer will consider as benefits against rivals. In the start the service will be given where the customer can return product within 2 weeks if they are not satisfied.
Price
Revlon’s overall pricing strategy is to market to a wide range of consumer’s with its product at a range of retail prices theycan accept.Revlon has competitive price over its competitors like L’Oreal, Maybelline cover girl within the competitive market. Price varies among the brand. E.g. eye makeup, foundation, mascara. The average price for competitive cosmetic ranges from $5 to $ 20. Revlon is offering quality product in lower price than competitors. They offer discounts in the form of coupons as a term of sales for their product. They distribute coupons in weekly ads and in magazines.
Place
Place or distribution depends on how easily the product will reach customer. Revlon has been selling their product in more than 100 countries. This product are sold on chemist shop, retailers, and shopping malls through websites, retailers and other stores. The place chosen is Canada.
Promotions
When the promotion is unique and differentiated it can boost product sale. Revlon’s promotional strategies are always focused on celebrity like Selma Hayek, Cindy Crawford(Marketing management 2000). This product uses variety of media channels including print, television, sale merchandising and internet marketing. Company runs ads in magazines that are geared towards women in women’s fashion and women’s service magazines. Also provides free sample of product for women o try.