Task II: International market entry proposal
India
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Contents
Introduction.................................................................................................................................................1
Why India?...................................................................................................................................................1
Marketing Objectives and Nature of Goals..................................................................................................2
Strategic Objectives and KPI’s.....................................................................................................................2
Risk Management Strategies.......................................................................................................................3
Marketing Approach and Promotion...........................................................................................................3
Introduction
For the purpose of this task, we have assumed that an Australian multinational operating in the
field of fast-moving consumer goods is considering the opportunity to expand its business in
India. As the director of International Marketing for my organization, the following market entry
plan contains the aims and objectives of our potential expansion in one of the biggest global and
South Asian country.
Why India?
With one of the largest populations in the world with more than 50% of it being in the age
bracket of 15-30, it is evident that India has a huge potential to develop into one of major
superpower of the next decade. Not only does the country has seen huge investments in its
infrastructure and industries but it has been the center of attention of several technical giants
such as Amazon, Facebook, Google, and WhatsApp. Surging investments reflect a bright future
of technology in India with the start-up and e-commerce platform experiencing rising funding. A
country encountering increasing issues of unproductivity, unemployment and thus taking
measures to turn this around is seeking investments from abroad thus presenting a positive
outlook of the business.
In light of these indicators, our organization is presented with an opportunity to expand our
business into a market with huge potential where the existing local and global players such as
Reckitt Benckiser, Unilever, Nestle and P&G are yet to expand their outreach to the entire Indian
Population, especially the majority living within distance of the poverty line. Since our product
offering in Australia has done exceptionally well to bring solutions for people in health and
hygiene at low rates while maintaining standard quality, we can predict huge potential for
success for our team in India. Therefore, one of our objectives would be to capture the sec B and
C market or the individuals below purchasing power parity line. Despite this aim, considering the
presence of existing players, we will aim for a more modest share of the market at the end of our
annual year which allows us reasonable profits to further expand our business once we have
established ourselves. Secondly, we will aim to penetrate the target market through advertising,
BTL and ATL activities via print, digital and electronic media. This will aim to increase our
brand awareness and will comprise of a significant share of our budget in first year to ensure a
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greater word of mouth. In addition to this, we will timely assess our costs and profits to make
sure that our investments are in balance and the business does not experiences a loss at any point
during this initial phase. Finally, our last objective would be to develop suitable partnerships and
collaborations with local distributors, agencies, and groups for mutual benefit.
Marketing Objectives and Nature of Goals
While the ultimate goals of this expansion would be to reap profits, there are various marketing
objectives that we have underlined in order to achieve our target. Identification and
determination of the size of target market is key to evaluating our production capacity. This will
be done to capture equal shares of sec A and sec B so that our offerings are catering majority of
the population. Next, we will aim to produce goods that provide us a competitive advantage over
competitors. To achieve this, we will carry out extended market research to determine attain
reliable, accurate and timely information on market dynamics, consumer demand, preferences,
and structure of market. Lastly, we will aim to develop a coordination and planning of our sales,
financing and production considering the information on target market. These goals will vary
from short-term to long-term based on their fulfillment.
In addition, the marketing objectives will serve the desired results, including an increase in sales
volumes, providing more favorable conditions for production and business activities, reduction
of costs per unit of production of the commodity and the formation of a positive image among
consumers and others.
Strategic Objectives and KPI’s
In order to have a successful expansion, our strategy will be based on four key divisions:
product, service, country, and consumer. To serve the purpose for each, the business we have
developed our strategy accordingly. First of all, to serve the consumers, we will aim to tailor our
offerings according to their needs and will attempt to cover the needs of all market segments. We
will aim to develop our brand loyalty through providing a unique shopping experience. For our
products, we aim to deliver quality goods at affordable prices that satisfy daily needs of
consumers. Our service will be defined on making timely deliveries, providing a wide range of
products and a smooth after sales experience. Country wise, we will aim to develop ourselves
into top 5 largest FMCG partner in India.
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These strategic objectives will be based on following KPI’s:
Delivered On-Time & In-Full: Monitor the delivery performance
Average Time to Sell: Track how long you need to sell your products
Sold Products Within Freshness Date: Take care of expiration dates
Cash-to-Cash Cycle Time: Analyze your cash cycle time in detail
Carrying Cost of Inventory: Assess the costs your inventory holds
On-Shelf Availability: Measure the impact on your sales
Margin by Product Category: Identify your most profitable products
Risk Management Strategies
To deal with issues such as out of stock products, we will pay attention to shop review randomly
and work with business department to reduce cargo delays. Problems of high inventory will be
dealt with improving transport, increasing working capital efficiency and monitor production
policy to maintain necessary days inventory. Ineffective sales force management will be catered
via training of employees as well as providing support teams in markets that tend to show
resistance to our products. To sort concerns related distribution management, technological and
data-based analysis will be used for improved decision-making.
Marketing Approach and Promotion
The ideal platforms used for product promotion will be digital media, social media, and
electronic media. Useful data tools will be used to run effective digital media campaigns and
suitable advertisements will be developed to cater each market segment. In addition, relevant
ATL and BTL activities will be carried out in target markets including supermarkets, family
stores, local retail shops and Kiryana stores to increase brand awareness.
With sufficient resources to enter into a global expansion, our company will not seek
partnerships or franchising with any local business for using our brand name or products.
However, the company will seek collaborations with local distributors, advertising agencies,
social media stars, celebrities to understand cultural aspects, needs of customers and their
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existing preferences to develop an effective advertising campaign around products that cater the
Indian market and provide them these products through exceptional services regularly.
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