PowerPoint Presentation

Market entry decisionsPresented by:

Ruqaiya vasi QA (17)Hemali Ganatra QA(5)Ridhhi desai QA (3)

What is market entry ??Amarket entry strategyis the planned method of delivering goods or services to a newtarget market and distributing them there.The target market maybe:

Domestic marketInternational market

Steps premier to launch a product

Market Selection

Market SelectionAdministrative distanceEconomic distanceGeographic distanceCultural distance

International market selectionMarket potential

Product suitability for a new market

InhibitionsIndian men did not consider shaving a significant activity to pay such premium.Most lacked running waterUnsatisfied existing double razor technology as it caused frequent cuts

SolutionAffordabilitySafety and ease of use with lesser irritationEasy-rinse cartridges that help save water and ensure the blades are clean, even if running water is not available.

Time of entry

Time of entryThe choice of market-entry time is one of the major reasons for new product success or failure

Types of entrants

Pioneers v/s late arrivals

Pioneers outweigh late arrivals

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Is it true always?

Late arrivals outweigh pioneers

Browser wars

Pioneer

Late arrivals

To win the first Browser War, Microsoft used their ubiquitous Windows operating system (and the nearly endless financial resources it afforded them) to deliver a deadly combo. First, they packaged Internet Explorer as the default browser in all Windows releases. And secondly, they made it free.The end of the First Browser War meant that for years Microsofts Internet Explorer went largely unchallenged. At their peak in 2002, Internet Explorer had attained 96% marketshare. Something no other browser has done before or since.But, a lack of competition also often means a lack of innovation.That was certainly the case with Internet Explorer.n 2004, Mozilla launched Firefox and the battle was officially back on. This time, users fed up with the sub par Internet Explorer were actually rooting for Firefox to win and their growing user base proved it.From 2004-2010 Firefox steadily grew in popularity until it peaked out at a little over 30% marketshare. Since then it has had the most consistent market share percentage of the top five browsers. Hovering between 20-30%.n 2005 the longtime but small player in the Browser Wars, Opera, became free. Having always been a solid browser (lean, fast, secure) with lots of innovative featuresApple with Safari and Google with Chrome.Apples main strategy was two fold: 1) make their browser the default browser on all of their devices; and 2) use their clout and influence to dictate web standards that would give them an advantage.Google also had a two fold strategy: 1) adopt an ultra fast cycle of iterative development; and 2) use their search engine, popular web apps, and considerable marketing budget to push users towards Google Chrome.n the beginning Google focused almost exclusively on one thing: speed. They made sure that their browser was the fastest on the market and that everyone knew it too. This is what attracted their earlier adopters, many of which were actually Firefox users who felt that their browser of choice was sacrificing speed for endless features.

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Time of the year

The time of year can have a big effect on chances of success. A product designed for sale at a special occasion of year should be released early enough in the year to gain momentum by the time the peak shopping season arrives.

On Valentines day introduce roses, love birds, sweetheart jewel boxes for ValentinesReleased in September 2006, targeting new years day, as a new year resolution for weight control and weight loss

Scale of market entry

Modes of entryIndirect exportingStrategic allianceJoint VentureFranchisingDirect exportingLicensingTurnkey projectsWholly owned subsidiaryCommitment, Risk, control and profit potential

ExportingIndirectDirect

Domestic/ overseas export divisionTravelling export sales representativeForeign based agentsExport merchantsExport agentsExport-management companies

Ranbaxy, Dr. reddys, sun pharma, lupin, wockhardt are export oriented coompanies.Divis Laboratories is engaged in the manufacture of generic active pharmaceutical ingredients (APIs), custom synthesis of active ingredients and other specialty chemicals such as peptides and nutraceuticals. Of its total sales, more than 90 per cent of the revenue comes from exports while the remaining comes from the domestic markets. Goa-based Sesa Goa is Indias largest private producer and exporter of iron ore with operations in Karnataka too. The company produces 18.8 MT of iron ore and receives 80 per cent of its revenue from exports and the rest through domestic sale.

FDC- 6 manufacturing site, electral mfg at nasik, sinnar. Catering to world markets and have overseas division at UK and SA.15

Contracts

Licensing

Afrezza

Licensing is a simple way to engage in international marketing. The licensor issues a license to a foreign company to use a manufacturing peocess, trademark or other rights.

1954: Pact with Daimler BenzTata Motors (then known as TELCO) entered into a deal with Daimler Benz AG, West Germany (Germany at that time was divided into East and West), to manufacture medium commercial vehicles.The first vehicle rolled out within 6 months of the contract.

In 1982, license and JV agreement was signed between Maruti Udyog and Suzuki Motor of Japan wherein Maruti had the license to import 40,000 cars per annum.

Sanofi gave global rights to mannkind for their promising insulin powder Afrezza but it never really took off so by april 2016 this licensing aggrement will completely terminate and sanofi will continue to sell it till then. It laid out $150 million in cash for global rights promised up to $775 million in milestone payments.17

Turnkey projectsContractors agrees to the client, in exchange of a fee, to design, build and operate a particular work.

Franchising

a franchisor firm that undertakes to transfer a business concept that it has developed, with corresponding operational guidelines, to non-domestic parties for a fee.

Pizza hut, macD, KFC, naturals have this concept.19

Investments

Sharing core strengths with each otherOpen door relationship with another entity and will mostly retain control.Strategic allianceLegal partnership where in they both make a new entity for competitive advantageCompletely new entity with a board, officers, and an executive team.Joint venture

Unitech Group andTelenor Groupagreed to enter ajoint venturewhere Telenor would inject fresh equity investments of61.35 billion into Unitech Wireless to take a majority stake in the company.20

Merger & Acquisition

NO 1 DEODORANT BRAND TODAY..???

NATIONAL SUCCESSES

Time of entry???As income increased, people shifted to DEO from Talcs.Did not launch FOGG right away.After talc, 18+ Deo helped built strong dealer network.

KITNA BODY ME LAGAYA, KITNA GAS ME UDAYA, AND 800 SPRAYS GUARANTEED

TARGET MARKET.???

InitiallyBlue fogg.Black FoggFor women

LEARNINGS FROM FOGG FOR MARKET ENTRY DECISIONSMARKET RESEARCH BEFORE LAUNCH IS MUST.

THIS IS THE HALLMARK OF CREATIVITY.

YOU DONT NEED TO BE 100% INNOVATIVE BEFORE ENTERINGBINTO AN ESTABLISHED MARKET.

GET THE RIGHT CONSUMER INSIGHTS AND GIVE THEM SOMETHING THAT IS ONLY 10% NEW.

FIG: MARKET SHARE OF FOGG

NAMO

Time of entry???BJP LOK SABHA ELECTIONS 2014

TARGET MARKET.???

YOUTH OF INDIA198 MILLION INTERNET USERS150 MN FIRST TIME VOTERSWOMEN

THE SUCCESS OF NAMO IS HIDDEN TO NO ONE.#Namohas become a household name or a name for which people wanted to make him win.

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