Making the Most of the Doha Opportunity - Assignment Example

LITERATURE SUMMARY The evolvement of the Indian market on the global vista is transfixing all other countries to reorganize their trade and commerce activities. Obstacle to business and venture in the Indian market are gradually declining with supplementary antagonism being initiated into the Indian marketplace, which has effectively given way to an emergent economy and a copious of intercontinental firms investing in the Indian market. The countries that have realized this opportunity are namely, Australia, South Korea, and the United States which are gradually developing approaches for taking benefit of the increasing prospects in India. Canada has recently realized the pressing need to enter the Indian market and has therefore started to initiate planning and strategies for the same. This paper is a study on the marketing relationships between India and Canada and later on studies the marketing and planning of a launch of a particular Canadian product into the Indian market. Currently, the mutual trade and business enterprises between the two countries is lower than the possible potential and naturally the Canadian investors are looking for better markets worldwide. There are numerous prospects that have risen up on India's fiscal, schooling, transportation, telecommunications, power, and IT services sectors, all of which are critical for India to sustain its impressive profitable expansion. The purpose of this term paper is to distinguish out the Indian Economy, while studying the special aspects, along with the trade and ventures between Canada and India. The second part of the paper as discussed above is about the prospects of the Indian market for the promotion of tumble dryers and in this context the civilizing and community needs of the society and their impacts are researched. Further a marketing strategy after analyzing the needs and barriers that are imposed by the Indian market are studied, a marketing plan is suggested to promote the product. Indo-Canadian trade - History and Recentinitiatives During modern period, India has turned out to be one of the most influential economies around the globe and is set to become an emerging power for centuries to come. The political arena contained by the Indian subcontinent has become stable to a big amount thus serving the country to footstep towards a contemporary culture, with the Indian market escalating at an incredible rate. Ever since India has emerged as developing nation, it has taken help from a number of countries to expand its market which also incorporated Canada to an immense level. In spite of a number of strategic differences between the two countries, India has been offered a continuous financial aid by Canada. During the late seventies, both the countries had strained relationships, however with the start of the early nineties, as India was set to become an influential player in the world economy, the situation got eased up. The growing trend of the Indian market was soon realized by Canada and the two countries stepped forward to bring about some major reforms in their market strategies with each other. Canada became mindful of the call for expanding its roots within Asia and recognized that India was the most favorable place which could offer vast markets for Canadian products. With the start of the later nineties, Canada initiated the progress to recuperate the two-sided associations amid the two nations. Since then there have been a number of reciprocated visits at the political level since thus moving forward the trade growth. In view of the fact that the intensity of Indo-Canadian business has augmented by many folds, the Indian industry has managed to grow up its export by exporting products readymade garments, textiles, steel, bronze, metal jewelry, precious stones, leather items, coffee and tea, spices, and jute items to Canada. On the other hand, Canada exported newsprint, pulp, lumber, peas, asbestos, iron, copper and other industrial materials to India. An agreement for setting up a Free trade level between the two nations is going on, which can subsequently strengthen the ties and offer more market and investment opportunities. Minister for International trade, Canadian Givernment, David Emerson (2004) said, "Many initiatives have taken place in the technology sector to forge ties between India and Canada. Improving relationship with India is a top priority for the Canadian Government and it will be soon finalizing the details to a Foreign Investment Protection and Promotion agreement (FIPA) with India". He further added, "With 80 per cent of exports going into the U.S....we do need to grow other markets and diversify our trade basket." (Research Report, 2004) Indo-Canadian Current Economic Relationship Presently, India possesses a growth rate of 8.5% and the percentage of Canadian exports is less than 0.5 percent and a stated by the Foreign Affairs and International Trade Canada, India stands for less than half a percent of Canada's total FDI outflows. As an approximation, the Canadian businesses sold $346 million in profitable services to the Indian market, and the investment from the Canadian forms is over $300 million. India offers a number of benefits that can be integrated within the global supply chain to yield profits. Low cost labor coupled with market competitiveness, same parliamentary systems in both the countries; offer an optimistic approach to international marketing and ventures. Both the countries possess a giant and spread out economy. In order to accomplish visibility and existence in other nation, it becomes a massive mission for industry and governments, especially when they belong to a middle-economic power like Canada. The Canadian uniqueness and demonstration in India is seen as a country with plenty of natural resources, in particular oil and gas. There is an enormous prospective for the Canadian industry in India as it is simple for them to discover positional business opportunities inside the Indian market. Giving due consideration to the dimension and assortment of the Indian consumer market, and the decentralized organizations, a well-built marketing plan is essential to regulate the forthcoming Canadian business. India has previously also depicted itself as a mammoth and a varied home to people coming from varied diverse regions. Mounting the Canadian existence will absolutely augment the both Indo - Canadian thoughtfulness of each other as well as create contacts between the indispensable trade and government officials. The paper looks at the situation of the Indian market, the potency and weaknesses of the product under study - Tumble dryer. Moreover, these characteristics are studied further to know their influence on the customer and threats in the marketplace. To end with, a promotion plan will lay down infiltration aims for the product and list down the main strategies that are needed to do so. RESEARCH ON INDIAN MARKET POTENTIAL FOR CANADIAN WHITE GOODS The intention of this paper is to study the international marketing aspect a product being launched into the Indian market. The product under concern here are tumble dryers. The influence of tumble dryers and the international marketing concepts that combine the theory related to science of Indian customer management are studied. On the basis of the theoretical framework, the appropriate sub-questions can be as follows: 1. What is the present Indian market situation of tumble dryers 2. What are the (non-standard) characteristics of tumble dryers 3. What is the structure of Indian market competition 4. What are the characteristics of the public policy in this sector (white goods) 5. Which factors effect the Indian market position of tumble dryers Proposed Marketing Plan For The Indian Market - Disruptive Marketing The proposed promotion plan suggests aiming just those Indian consumer and Indian markets that are still not a focus for or have not yet attracted the consideration of the new aggressive market players. In case, any ingredient of the marketing approach or a scheme is an underneath or even a better version of a previously accessible and trendy product is relative to even a single player, the idea will not do well as a diversion for the Indian consumer. The most important plan of the marketing proposal is to endeavor to struggle in opposition to non -consumption: customers or clients who are at present not competent enough to utilize the accessible products at all, both for the reason that they can't shell out money for them or are too inexperienced to utilize them. The Indian consumer which can be easily compared with the above types, is a considerable example for this case. Indian markets possess a lot of prospects for the reason that the Indian consumer will judge the product to having nothing at all, and so will be pleased to pay money for it even if it's low quality to the other currently offered products in the market. If in case, the targeted Indian market has no non consumers, then it is better to target the advertising plan to discover the viability of a low-end distraction as an alternative (which yet again is a strong feature of the Indian market setting), customers who are not able to utilize the products they at present have to pay for and who do not wish to pay top prices for brand products. These sorts of marketing plans where disruptive prospective of the customer is being targeted at, it is better to help customers with less expensive and ethnically adaptive stuffs. It is a superior thought not to create fresh issues for the customers, because they will not be able to re-prioritize the products. SWOT ANALYSIS AND RESEARCH This section presents the Strengths, Weaknesses. Opportunities, and Threats (SWOT) analysis, and also lists down the strengths and weaknesses of the product -Tumble dryer. It also affirms the opportunities and threats faced by it due to the changes in the external surroundings or the targeted market. Strengths - The product - Tumble dryers posses the following advantages and facilities that are offered to the customer. 1. There are many brands of the product that are easily available in the Indian market and a few of them lead many segments in the market. These brands are also well known on the global scene and offer a number of other home appliances in the Indian market. This helps to gain enough recognition in the Indian market. 2. The product can gain from the well balanced product portfolio of the various brands that are available in the market. 3. The product has a supple and client oriented product history. 4. The various products that are offered by the various companies offer environment compatibility and have trouble-free installation processes. 5. The product has shown a considerable development in the Indian white goods region as they have increased the market share by 3% to over 6% within two years. 6. The product, belonging to whichever brand has significantly improved its functionality and is giving latest added modern integrated products as evaluated against the other products in the competition. 7. The tumble dryers have received good reviews from the countries where it has been launched and therefore has a good backup. 8. Presently there are no international brands in the field of Tumble dryers in the Indian market so it can be mush easier for the brand to establish itself amongst the user community. 9. The latest model of a tumble dryer with a heat pump rather than an electric pump which serves three fruitful purposes. a. World wide application usability b. The product had to be flexible which is also in favor of the condense dryer. c. Usability which means that the higher price must give quality in return Weakness - 1. There is a no Non Premium entry for the product in the Indian market. 2. The product also suffers from a high production cost and promotion strategy. 3. The product also involves a high risk since the failure of this product might adversely affect the market for the other products. 4. There are a number of local manufactures that exist in the market which have built up a string relationship with the customer. 5. There exists a small number of local substitutes or options in the Indian market which can prove a competition to this product. 6. The relatively high cost of the product in comparison to the local options that are easily available in the market is a strong point which in not in favor of the product. 7. There are no international players in this field, so it might be difficult to create a substantial impression upon the customer community with regards to using brand products. 8. The testing of the tumble dryers' costs about 12.500 ECU, which further adds to the cost. Opportunities 1. Has the potential to shift to low cost commodities on sourcing 2. Can shift the prices to lower limits in the absence of other international brands and create a command over the market. 3. The arrival of this product into the Indian market can open up doors to many other international products and small time business opportunities. Threats - 1. The opportunity to establish in the Indian market is at present a low niche and can either be used up in any other large market which does not underestimates the importance of the product and is culturally well associated with it. 2. There may be very high expectations from the suppliers. 3. Presence of local manufactures may lead to a total wash out of the brand. 4. Customer expectations to rise with time and they might want the product, which is at present separate, from a washing machine, be incorporated into the washing machine. This may lead to additional costs for the company. 5. Any failure of the brand at the international market may threaten the impression of the brand at other worldwide markets. MARKETING STRATEGY APPROACH FOR TUMBLE DRYERS The Indian market is a varied culture which is responding to a fast changing scenario. Peter Tuderbergs, Director of Home products for an international company says, "We will be the world leader in our products, which make everyday life more comfortable and safe." Which is supported by the mission that we will provide products, services and marketing of such excellent value that customers will actively choose to do business with us. From this we will create shareholder value."And the following set of values:"To reach our goals in providing value to customers and shareholders we will continue to develop a culture, built on the strength of the multi-cultural organization and embraced by all our team members. Key values are: co-operation, people development, environmental concern, professionalism and speed". Thus, as seen by the vision created by the international companies for the Indian market, A marketing recommendation with a Plan - Deploy - Review theory in all its international markets which consists of a planning stage where various business issues like vision, mission, values and business pressures are considered. Also mentioned are the customer inputs and employee welfare activities, which finally lays down a PDR strategy structure tree for the Home Products marketing which is as follows: PLAN STAGE Products' operation statement The significant operational and civilizing achievement factors to accomplish the mission The widened goals necessary to hit the achievement factors The actions and goals set for the stretch goals The measures and targets for the activities The critical business systems that would work towards the measures. The four significant accomplishment reasons that are needed in the marketing plan are: 1. To reduce the cost of going to the Indian market 2. Boost up the brand awareness 3. astonish customers with innovative products 4. be renowned for equipped efficiency and overhauling standards DEPLOY STAGE- In this stage, the above mentioned strategy is deployed with the help of a cross-functional process teams which need to make use of a Managing Process Improvement (MPI). This MPI makes use of a seven-stage improvement process: 1. recognize development prospects 2. classify key clients and dealers 3. set up agreed-upon necessities 4. illustrate and employ enhancements 5. explain and examine the trouble 6. expand and realize enhancement 7. calculate and observe REVIEW STAGE In this stage, a complete review of the marketing plans, impact of society and the customer feedbacks are taken up. A PROPOSED MARKETING PLAN TEMPLATE FOR COLLECTION OF DATA A properly developed and executed marketing plan will outline the costs, sales, advertisements and promotional figures of the process of introducing tumble dryers in the Indian market. The marketing plan starts with the thought process about the central business activities that will be involved in the marketing of the product. 1. Who are the potential customers and the targeted customers Note that there is a difference between the targeted and potential customers. 2. How will the company price the product after evaluating the buying potential of the Indian buyer 3. What are the possible channels, sales and methods that can be employed for the effective marketing of the tumble dryers 4. What is the time frame and plan to spend the marketing plans A typical structure of a proposed marketing plan for the launch of the product in the Indian markets is represented below: A. Condition Analysis - In this part, the analysis of the targeted Indian market is done with references to the following issues. These issues may be related to the geographical image, present Indian market situation, competitive analysis of the different brands present in the Indian market, Indian customer or end user analysis, tumble dryer product review and its distribution. Environment Analysis 1. Indian Demographic trends (age, gender, family size, family life cycle, income, occupation, education, religion, race, nationality) 2. Indian Economy and Financial trends 3. Technical Backdrops and Trends 4. Political Issues and Laws 5. Indian Communal Trends 6. Civilizing Trends within the societies 7. Material Supply Trends/Issues 8. Predictable impact of the Internet on the product marketing plan and Industry, both today and in the future Market Situation 1. Indian Market Situation 2. Size of total Indian market 3. Growth trend of total Indian market 4. Key elements that affect the Indian market scenario Competitive Situation 1. SWOT Analysis (strengths/weaknesses/opportunities/threats) 2. Listing down of key competitors and their market position with context to the Indian scenario 3. Evaluation of the size of the competitors and their revenue analysis 4. The Indian Market share of each of the key competitors 5. Sales trends of key competitors 6. Strong point of key competitors compared to the product or services. 7. Promotion strategies of key player and their likely impact on your product 8. Unique Selling Proposition of the product that can attract the customer 9. Competitors' likely response to your Advertising/Promotion program and your planned counter- measures End User Situation 1. Explanation of end users in demographic, psychographic, and cultural terms. 2. Assessment of the target buyer or the end user needs, approach, and awareness of class products and services. 3. Where target buyers or the end users are situated and how do the company aim to reach them and sell their product. 4. Evaluation of various market segments and as a whole which are growing or declining and why. Product Situation 1. Sales of the different brands 2. Total profits of each brand 3. Product lifestyle trend. Is it stable, increasing or declining 4. Costs beard 5. Advertising spending history (5+ years of advertising, promotion, PR spending) 6. Supply trends and developments 7. Account of the trade Allocation and Delivery Position 1. To arrange an resourceful circulation channel 2. Impact of each circulation (Allocation and Delivery) channel in terms of: - Percent of business sales - Development potential - Competitive status B. Goals and Objectives - The marketing plan also targets to describe the goals of the company and working out the accurate approach. These comprise the following: 1. Fiscal objectives - this part of the plan would consider the following economic targets related to the marketing of the product -Gross sales, Cost of products, Gross margins, Net profit and ROI. 2. Marketing objectives - this section of the under this, the following are to be well thought-out, sales revenue, total sales, and market share and delivery levels. This section will also consist of a promotion schedule which lists all the marketing, publicity and promotional activities. CONCLUSION By preferring India as an investment ground, the investors are definitely able to be establishing themselves in the global market that India is trying to set for itself. India offers the advantage of low taxes, and easy infiltration. The trail evidence of the monetary expansion of India only shows that the country is worth investing in. however, there can be a minute threat of leasing yields going down for the White goods market, this is because the country is improving on its international market and chances are, more and more people would come in the country. Comparing the threats and the paybacks of investing in the Indian market, it is healthier to decide to invest than deciding not to. 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