Metro H and Res Marketing Plan Extending To India - Essay Example

?Pakua kiambatisho halisi     Metro H and Res Marketing Plan Extending To India       Lecturer Table of contents 0 Executive summary…………………………………………………………………………… 2.0 Market research………………………………………………………………………………… 2.1 Customers……………………………………………………………………………………… 2.2 Competition…………………………………………………………………………………… 3.0 Marketing Niche……………………………………………………………………………… 4.0 Marketing strategy…………………………………………………………………………… Conclusion………………………………………………………………………………………..   1.0 Executive Summary The focus of this paper is on the Indian’s attractive market that is tempting many foreign investors into it. India has a large population of about 1.2 billion that ranks it among the largest countries in the world and hence a promising market. The nation GDP is reported to be increasing with an average growth rate of between 5 – 7 %. Additionally, the country has numerous industries that boost the economy. Tourism industry ranks first among the service industries and thus a good sector to invest in. To facilitate the increasing level of domestic and international tourism, many hotels, restaurants and accommodation facilities are on demand. This creates an excellent opportunity for Metro H and Res Company that aims at supplying modern kitchen equipment to the Indian market. 2.0 Market Research The company will do well after a fruitful market research that will identify the strong areas to invest in (Golder, 2000). India has wide global market that records a high growth rate over the last few years with its GDP rising to 9%. Its rapid growth has ranked it third amongst the fastest growing economies (Shanker & De, 2011). India’s population is tremendous with a population that is growing above 1.2 billion. The high population creates a good market for the Metro H and Res Company. Industrial growth is also recommendable in India as there are lots of established industries and many more growing. The hospitality industry is one of the leading economic segments that contribute largely to the national income (Hospitality India, 2013). The tourism sector which encompasses the hospitality industry contributes about 6.23% of the GDP. The vast tourism industries thus create an opportunity for the company to establish its business. Primary Data. An interview was conducted with a few hotel chain agents in India and they participated in answering questions about their opinions on the Metro H and Res Company and its operations. They also discussed the trends of the company, its recent developments and how these were relevant to its development and status in the Indian market. 2.1 Customers The business plans aims at attracting the hotel operators as well as have direct sales to potential customers. India’s population comprises of a large proportion of the young people in the bracket of 15 to 29 years. These age brackets comprise of the energetic persons with great ability to work and hence are likely to have to have high income which will be of benefit to the company products. The company will thus be in a position continuously selling its products without the market dying as the country is deemed to remain young over a long period of time (Shanker & De, 2011). The data below shows the population in India. Similarly, the company establishing its location in the towns will be of great advantage as the country is facing a trend in which people are migrating to urban regions. The people will thus be close to the company’s product creating a better market for the company. The company will also have reduced expenses in transporting its products to the rural regions as few people are found there. The plan will target all genders where over 80% percent of the residents in the cities are literate hence more aware of the modern kitchen equipment. This makes the market in the urban area more favourable. India is considered an important country in production of literate persons with tertiary level skills and thus are able to find employment in many parts of the cities’ industries and businesses as well as establish their own businesses to secure some income. This fact assures the company of growth in the county. The Indian customers have a trend of weighing their purchases based on their prices and attributes (IBEF, 2013). The company will thus need to offer high quality products that have friendly prices in order to compete favourably with the other companies offering similar brands of products. Similarly, India’s cities have a long chain of hotels and restaurants which will create a good market for the company (Vardharajan, Goel & Karulkar, 2010). The country sees a remarkable increase in the number of hotels in every city all the years which promises the company of sustainable growth. The statics below show the entry of new hotels into the cities. City Total number of rooms in all hotels in the city Expected growth of rooms in the hotels Average increase in the number of rooms per year Average number of new hotels in the cities Delhi 11,018 20,021 4,004 31 Mumbai 9,877 7,477 1,495 11 Bangaluru 5,597 9,819 1,963 15 Chennai 3,806 5,995 1,199 9 Hyderabad 3,782 5,302 1,060 8 Pune 2,672 5,196 1,039 8 Kolkata 1,520 3,481 696 5 Jaipur 2,472 2,664 532 4 2.2 Competition The company may be faced by great competition from other businesses targeting the growing tourism industry (Golder, 2000). The number of foreign industries getting to the Indian market is increasing rapidly due to the government policy that aims at offering incentives to foreigners called the Foreign Direct Investment. This incentive may attract many potential competitors. However, the business plan on modern kitchen equipment has no major competition as many businesses as extended in the food sector (Gopal & Suryanarayana, 2011). However, there are some companies that have been some base in India that are likely to offer great competition. Hoshizaki International is a good example that is established in India and deals with equipment such as food safety equipment, ice making equipment and refrigerators and other kitchenware (Hoshizaki International, 2013). This poses a great challenge to the company as most of the products from Hoshizaki International are internationally recognized and hence accepted easily into the market. Similarly, Godrej Group may offer a lot of competition to the company. This is a company that is situated in Mumbai India and has extensionally been recognized as a world class distributor of much kitchen equipment such as the refrigerators (Afaqs, 2013). However, the two challenges may be outdone by the Metro H and Res Company as they are known to major in many diverse suppliers such as animal products, chemicals, engineering materials and construction among many others. This offers a good chance for the company to do well in the market as it will be dealing exclusively in modern kitchenware. The disadvantage to the company is that the two companies have well developed roots in the country and many people are familiar with their products which will require Metro H and Res Company to work harder towards attaining the nation reputation in supply of their goods. Factor Me Strength Weakness Godrej Group Hoshizaki International Importance to Customer Products Quality products are guaranteed. Applies. Widely accepted products Widely accepted products 5 Quality Deals exclusively in modern and quality kitchenware. Applies. Is diversified hence less quality. Is diversified hence less quality. 4 Company Reputation Relatively good reputation. Applies. Internationally recognized Internationally recognized 4 The company produces quality products and its operations are centralized on producing kitchenware of higher quality. However, it has a less competitive advantage as compared to the other two companies. 3.0 Marketing Niche The company aims to establish its business in the major cities such as Mumbai, Bangalore, Delhi, Chennai and Jaipur. The urban areas have a high population as compared to the rural areas, high levels of literacy and thus high levels of income which will offer market to the company’s products. 4.0 Marketing Strategy The company will use several approaches creating its name in India (Golder, 2000). The company will do lots of advertisements in the TVs and radios and newspapers. India has a well-established communication link which will enable the information to reach the people. A high population of the citizens about 77% has access to television which comprises the people in urban centres who have some good income. Radio advertisements will also reach the people easily. Many households in the urban areas about 25 % have radios while about 17% percent of the rural population can rely on radios. Similarly a large portion of the urban residents have phones which represents about 76% of the people. Rural residents who use phones are about 51%. Mobile phones will thus aid in sending the information to the people all over the country as most of them are capable of depicting radio frequencies (Dalberg Global Development Advisors, 2013). Moreover, printed advertisements such as newspapers will also aid in promoting the company. The population in the urban areas has 57% access to the newspaper while the rural population has about 31%. Catalogues can also be accessed by the target customers as the people are able to reach many printed materials. Internet advertisements are also going to improve the products promotion. This is because the urban population has a high chance of about 8% of accessing internet from cyber cafes and personal computers. Rural areas have a lower capability of about 3%. The internet access is deemed to increase due to the high usage of internet enabled phones (Dalberg Global Development Advisors, 2013). The data below shows the ability to reach advertisements in rural and urban area The advertisements should be done repeatedly over a year to ensure that the information gets to the people clearly and wins them.  Internet marketing is a cheap way to get to the market. Therefore, the growing trend towards internet access should be used by the company to reach the market. This will be a suitable way of reaching the right customers as most internet users will be the learned persons who will have high interest in the modern kitchenware. The company will also look into other cheap ways of reaching the people such as trade shows. There are numerous tradeshows held annually in India. However, the Fire India tradeshow is a great opportunity for the company to display its products as this trade fair deals with, industrial products. The company can also find great competitors in this field and get a chance to learn from them. Offering services such as after sales services will help in building the name of the company. This may include services such as transportation and yearly guarantees. The company may also use personal selling which will entail sending representatives to specific locations to meet customers where they can display some of their products and demonstrate their use (Kotler, 1997). Logos also help in creating attention to customers as they come to the company and should thus be used.  The aim of the promotion methods is to create a name for the company and a good reputation that will help it thrive through the competitive environment. 5.0 Conclusion Business in India is very promising due to the increasing rates of modernization. The migration from rural to urban areas, increasing literacy levels, as well as technological advancements in the country creates a favourable market to Metro H and Res Company.  The company’s choice of modern kitchen equipment is thus likely to have easy reach to the people as it will be solely concentrating on these products which will enable it to compete favourably in the market.   Works Cited Afaqs, 2013. Godrej Group ranked 9th in the first edition of Interbrand's 'Best Indian Brands' survey. [Online] Available at: http://www.afaqs.com/news/company_briefs/?id=56539_Godrej+Group+ranked+9th+in+the+first+edition+of+Interbrand [Accessed 22 October, 2013]. Dalberg Global Development Advisors, 2013. Indian cook stoves and fuels market assessment. New Delhi: Global Alliance for Clean Cookstoves. Golder, P., 2000.Historical method in marketing research with new evidence on long-term market share stability. Journal of Marketing Research 37(2), pp. 156-172. Gopal, V. & Suryanarayana, A., 2011. Growth drivers and challenges for organized retailing in India. Kuala Lumpur: IACSIT Press.  Hoshizaki International, 2013. About Hoshizaki. [Online] Available at: http://www.hoshizaki.com/ [Accessed 22 October, 2013]. Hospitality India, 2013. Statistics of hospitality industry in India. [Online] Available at: http://www.hospitalityindia.com/hospitality-industry-in-india.htm [Accessed 22 October, 2013]. IBEF, 2013. Indian Consumer Market. [Online] Available at: http://www.ibef.org/industry/indian-consumer-market.aspx [Accessed 10 September 2013]. Kotler, P., 1997. Marketing management; analysis, planning, implementation and control. 9th edn. New Jersey: Pearson education Inc. Shanker, R. & De, D., 2011. Changing pattern of the Indian market. [pdf] New Delhi: Jaypee Business School. Available at: http://www.jbs.ac.in/jbs/Changing%20Pattern%20of%20Indian%20Market.pdf [Accessed 22.10.2013] Vardharajan, K., Goel, P. & Karulkar, A., 2010. Hotels in India trends & statistics [pdf] New Delhi: Ministry of Tourism. Available at: http://www.hvs.com/Content/3185.pdf [Accessed 22.10. 2013]. Read More