Formal project plan for implementation of recommendations
Mpk736 International Marketing Answers Assessment Answers
The task is to prepare an international marketing plan for a specific product for a specific target country/market.
This is an industry-based assignment. Students need to choose an Australian company for this assignment and select one of their products (manufactured or service) for export.
ULO
1 Demonstrate an understanding of the major trends in the international trading environment, influenced by global decision-making and the different business and cultural conventions and their effect on buying behaviour and marketing approaches in international markets.
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Answer:
Introduction
Description of Company
Target country selected
Target Market
Primary and entry strategy
The primary and entry strategy of Wesfarmers could be to enter into Joint venture strategic alliance with other organization which will assist company to comply with the all the applicable rules and regulations in new Singapore market (Bocken,. de Pauw, Bakker, . and van der Grinten, 2016).
Sources used
Wesfarmers could use the primary and secondary sources to manage its business. The primary data such as questionnaire, meeting and observation could be used by Wesfarmers to identify the potential demand and rival’s offering in market. However, journal articles, documents and official gazettes could be used by company to analysis the market share and technologies used by other companies in selling cloths such as t-shirt, jeans and other outfits.
Market analysis
Host country analysis
Macro environment analysis (PESTEL framework)
| Political | Economic | Social | Technological | Environmental | Legal |
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It is accompanied with the social values, belief and culture factors of the people in Singapore. People in Singapore are more inclined towards buying quality fabrics and clothes irrespective of the cost of the same. Wesfarmers needs to offer high quality fabrics in its clothing if it wants to attract more clients in market. It could also be used by company to position itself in market with its customized high quality clothing products in market (Bocken, de Pauw, Bakker,. and van der Grinten, 2016).
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The Legal factors of Singapore are highly stable. However, Wesfarmers could use its effective brand image to diversify its business in this clothing industry; Company might face issue related to remitting the capital from Australia to Singapore due to the complex legal compliance program
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Demographic Environment
Natural Environment
Physical Environment
Nature of demand
Target market analysis
Target market profile- The Singapore’s population size remain stable at 5.61 million in which more than 30 % of the people falls between the age group of 18 years to 55 years. However, it is estimation dependents upon the collected hypothesis (Burns, 2016).
Product Category Stage of Product Life Cycle
Cost structure of Industry
The cost structure of the Retails cloth outlets would be related to the purchasing cost of the cloths, articles (Manufacturing cost) business related administration expenses, rental expenses, machines and tools used in the retail stores to sell the articles to clients in market. (Crane, and Matten, 2016).
Competitive structure
There are several competitive rivals of the organization who are selling the clothing and footwear through their self-owned retail stores such as Puma, Jack and Jones, Zara and Lacoste. These are the top most companies who have grabbed more than 40% of the Singapore market share. However, use of cyber computing enterprises resources planning will also assist Wesfarmers to attract clients through its online portal (Gattorna, 2016).
| Direct competitors | ||||
| Company A | Company B | Company C | ||
| Company highlights | Company profile | Zara | Puma | Lacoste |
| Key competitive advantage | Cost leadership | Standardised high quality cloths | Unique cloths and strong brand image | |
| Market information | Target market | Middle class people | Sport lovers | High income group people |
| Market share | 12% | 15% | 13% | |
| Marketing strategy | ||||
| Product information | Product (goods and services | Formal shirt, T-Shirt, Jeans. | Sport T-shirts | Formal and informal shirts and T-shirt |
| Pricing | Average price | Low price | High pricing | |
| Distribution channels | Use of retail stores and online channels | Use of retail stores and online channels | Use of retail stores and online channels | |
| Communication | Loyalty card and social media | Seminars, TV advertisement and social media | Online and offline portals. | |
| SWOT analysis | Strength | Strong brand image | Unique Sport wears | Stylish trendy cloths |
| Weaknesses | High legal compliance | Costing of its products | Highly complex process cycle to import stocks from other countries. | |
| Opportunities | Increased GDP may pose good opportunity for market expansion | Diversifying the market with its new product development strategy | Setting strategic alliance to sell low costly cloths | |
| Threats | Increased number of new entrants | High competition from the rivals | Loss of clients due to high clothing costing. | |
| Trends | Highly trendy and unique cloths | Highly trendy and comfortable cloths | Highly trendy and unique cloths | |
SWOT analysis
Internal Company Strengths and Weaknesses
| Opportunities | Threats |
| With the changes in economic condition of the Singapore, people in Singapore are more inclined towards the high quality fabrics and cloths in their wearing. It is analyzed that with the purchasing power of the people in Singapore, Wesfarmers could easily offer high quality clothes to its clients irrespective of prices and costing of clothes in market. | The high return on capital employed will attract more business organizations to tap this new clothing business in Singapore. Wesfarmers might have to face high threats from the rivals and may fail if it does not use the advance technologies and system process (Kim, and Min, 2015). |
Implications of SWOT Analysis
Objectives
International objective
Market objective
Target Market identification and segmentation strategies
Segmentation Strategy
It is analyzed that company should follow the product differentiation strategy while tapping Singapore market with its clothing products. The main Segmentation strategy of company is to bifurcate its products on the basis of choices trend and demand of the people. There would be segmentation of the market based on the sex, likeness, region and income of the people. It will assist in customization of its offering as per the client’s needs and demand market.
Market positioning
Company wants to position itself strongly in market with its advance technologies and high quality products in market. It has mission to position itself as strongest rival which could offer customized cloths as per the trend and demand of the people in Singapore (Schultz, and Schultz, 2015).
Market Entry strategy
Price- It is the element which reflects that the price of the offered cloths will be matter of less concern. Company would focus on increasing the quality without worrying about the value or price of clothing products. However, setting up price of its clothing products high may be negative indicator for the sustainable business functioning.
PLANNING BUDGET
This planning budget is based on the expenses and costing of the newly set up business, action plan and expectation of the people from the new clothing business of Wesfarmers in Singapore (Jin, et al. 2017).
Planning Assumptions
- The political and government laws will be stable.
- Easy availability of the capital and human resources.
- Less economic changes and implementation of expected action plans.
Forecast Profitability (or Break Even Analysis)
Sensitivity analysis
| Average clothing Sales | 0 | 1,000 | 2,000 | 3,000 | 4,000 | 5,000 | 6,000 | 7,000 | 8,000 | 9,000 | 10,000 | |
| Sales price per unit | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 | |
| Fixed costs per period | 3,400.00 | 3,400.00 | 3,400.00 | 3,400.00 | 3,400.00 | 3,400.00 | 3,400.00 | 3,400.00 | 3,400.00 | 3,400.00 | 3,400.00 | |
| Variable costs | 0.00 | 7,600.00 | 15,200.00 | 22,800.00 | 30,400.00 | 38,000.00 | 45,600.00 | 53,200.00 | 60,800.00 | 68,400.00 | 76,000.00 | |
| Total costs | 3,400.00 | 11,000.00 | 18,600.00 | 26,200.00 | 33,800.00 | 41,400.00 | 49,000.00 | 56,600.00 | 64,200.00 | 71,800.00 | 79,400.00 | |
| Total sales | 0.00 | 2,000,000.00 | 4,000,000.00 | 6,000,000.00 | 8,000,000.00 | 10,000,000.00 | 12,000,000.00 | 14,000,000.00 | 16,000,000.00 | 18,000,000.00 | 20,000,000.00 | |
| Net profit (loss) | -3,400.00 | 1,989,000.00 | 3,981,400.00 | 5,973,800.00 | 7,966,200.00 | 9,958,600.00 | 11,951,000.00 | 13,943,400.00 | 15,935,800.00 | 17,928,200.00 | 19,920,600.00 | |
Formal Project Plan for Implementation of Recommendations
This action plan could be monitored by using the internal control program and implemented strategies.
This activities action plan could be monitored by analysing the Gantt chart.
Formal Contingency Plans
References
Byrne, O. and Shepherd, D.A., 2015. Different strokes for different folks: Entrepreneurial narratives of emotion, cognition, and making sense of business failure. Entrepreneurship Theory and Practice, 39(2), pp.375-405.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Jin, L., Madison, K., Kraiczy, N.D., Kellermanns, F.W., Crook, T.R. and Xi, J., 2017. Entrepreneurial Team Composition Characteristics and New Venture Performance: A Meta?Analysis. Entrepreneurship Theory and Practice, 41(5), pp.743-771.
Kim, S.K. and Min, S., 2015. Business model innovation performance: When does adding a new business model benefit an incumbent?. Strategic Entrepreneurship Journal, 9(1), pp.34-57.
Schultz, D. and Schultz, S.E., 2015. Psychology and Work Today: Pearson New International Edition CourseSmart eTextbook. Routledge.
Tengblad, S. and Oudhuis, M., 2018. Organization Resilience: What Makes Companies and Organizations Sustainable?. In The Resilience Framework (pp. 3-17). Springer, Singapore.
