Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
The IMPORTANCE OF INTERNATIONAL MARKETING
Macro environment introduction
Macro environment introduction
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: The IMPORTANCE OF INTERNATIONAL MARKETING
Whether Go Global or Not?
Course: Introduction to Marketing
Assignment: “Whether go global or not?”
Before deciding whether to go global by selling Bjni in Georgia we have to understand the marketing environment of Georgia, demographic, economic, natural, political, cultural and technological forces, test consumer behavior, analyze competitors. At the end of our research, we will come up with conclusion whether Bjni has to go global, by entering the Georgian market of bottled waters, or Sukiasyan family have to sell the company.
Macro environment of Georgia
Georgia is a small country (69,700 sq km) with a population of approximately 5.1 mln. The biggest Diaspora in Georgia is Armenian (approximately 8.1%), which is very important factor of an Armenian product in Georgia. Life expectancy is 64,8 years. In 2006 Georgia’s GDP growth rate was 8.8%, making Georgia one of the fastest growing economies in Eastern Europe. According to the World Bank Georgia is “The number one economic reformer in the world” because it has in one year improved from rank 112th to 18th in terms of ease of doing business. Recently the Governments has reduced the number of taxes from 21 to 14 and introduced the flat income tax of 12%. It has significantly reduced the number of licenses a business requires, and introduced a “one-window” system that allows an entrepreneur to open a business relatively quickly. Georgia is a low-income, developing country, but it has wealthy segments of high-income consumers as well. This makes Georgia attractive for starting a business.
The political regime in the republic changed several times during the independent period, and the country suffered extensive internal clashes, sometimes qualified as civil war. The clashes between the opposition and the government that took place last November and the tensions arising about the upcoming parliamentary elections in May will most likely result to more chaos and political instability in the country. In 2006, trade relations were plagued by politically motivated interruptions when Russia imposed bans on all Georgian exports of wine, fruits, vegetables and mineral water. The unsteady situation in the country will definitely affect on the business.
In terms of government bureaucracy, Georgia has improved a lot recently and nowadays we should note that the government runs an efficient system for helping foreign companies invest.
In the particular case of Armenia and Georgia, we should notice that both countries are in the same international trade system (WTO).
In terms of culture, Armenia and Georgia are very closely related.
Its business plan requires go through markets with international expansion and was based on the successful launch of Fiji water through the marketing strategy for the United States and the high quality of the people who took the first marketing were able to differentiate the brand FIJI in a crowded market in nearly 400 brands of bottled water.
Evidently the best locations to gather information will probably consists of bars, clubs, and liquors stores. As a result they can possibly figure what type of audience is drinking their beverage from country to country. They might even come close to showing certain types of commercials and ads in selected countries. Since people living in foreign countries tend to have different ideology, styles, and cultures. This factor can also be a major impact towards the demography. This can lead the company to examine the aspects of each country and attempt to market a relation towards their consumers. Thus the power of advertising is stronger than what we imagine. We can simply throw any relational principle towards the audience. If done effectively it can cause a formidable following.
Regulations come along with every country and are just a set of rules that help keep countries in place. They are important to follow and are proven to keep problems from happening, having requisites to do a type business anywhere will cause order and build areas to become better applied. Uruguay has a small market, but its state policy promotes and protects foreign investments. Regarding the regulations Uruguay has to owning a company there; it said to allow the company to locate anywhere in the country and it will be treated like a local company. Since it is a growing country that promotes and protects investments with other countries, it is reaching agreements and attracting others. One way Uruguay attracts foreign investors is by its free zones. Companies working in these zones are excused from all taxes ...
Nowadays, Globalization is a main trend for the world economic. The world’s economy has become fully integrated. There are no barriers and borders to trade around the world.
Innocent is a well-established smoothie and health food company in its home market of the UK and has had success in moving into various markets in the European Union. With the added partnership with global brand Coca-Cola, it could be said that Innocent is in prime position to begin its expansion into new markets globally. This report will note the benefits and potential risks of entering the chosen market of Japan based on research and theoretical analysis.
In conclusion, with the government change left and right, Russia went through a period of chaos and destruction. The government change also hurt Russia's economy and the alliances that Russia made in previous years. The government was also the main cause of the Cold War and because of the time period, Russia is a completely different time from when Russia was back in the 1900s.
With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. While many businesses thrive solely on serving a small local area, a globalized company has the benefits of increased customer markets, gross production, and brand awareness. Take for example Coca-Cola; this multi-national corporation offers products in countries all over the world, operates in over 200 of those countries with the help of its franchisees, and is the most well-known beverage companies. It is interesting to note however, that as positive as globalization may seem, there are many negative ramifications and a large population of detractors to this movement. While increased product availability is good for profits, if a local market is inundated with imported products, locally grown or manufactured items may be squeezed out, to the detriment of the local economy. Although it is cost effective to have your product produced in another country with low wages, you are essentially taking away jobs from the people of your own country, negatively impacting your national economy. However, if you manufacture your products in a country with higher wages, you must increase your products’ prices which may be harmful to your profits. While maximizing your companies profits is always of great importance, it is essential that you weigh the pros and cons of globalization and its effects on not only your company, but the areas in which you wish to spread.
The first step in doing international business, this involves manufacturing and/or purchasing of components in different regions of the world and then putting them together to make the final product. The benefit of producing a product in a different part of the world is it can be done at a lower cost. For example Indonesia boasts among the lowest costs in the world, a big domestic market, and proximity to the rest of Asia. As a result, some companies are not merely sticking around they are expanding. Coca-Cola plans to open a new bottling plant next year. All told, over the past three years, the government has approved $26.2 billion in new foreign investment. Officials say foreign investors, apart from petroleum and financial-services companies, employ 3.5 million Indonesians, or 3.5% of the workforce.
If a company has set its objectives there is need to look into the following. Which countries are their target market and who are the consumers and how or which marketing strategy should they use to reach the consumers. The company needs to know what products are best for their chosen customers and if there may arise a need to adjust the company should be ready for it. The other thing they should consider are the import regulations in their country, market and the global rules also should focus on the competition involved looking...
In his study states that 4P‟s applied by Sachet- water Vendors Product that is Product, Price, Place, and Promotion. Water quality focused , for both hand-tied and factory-produced sachet water, and the brand name and company reputation of factory-produced sachet water. From questionnaires directed to customers of sachet water, 80% felt that the water quality of factory-produced sachet water was good and only 33% felt the same for hand-tied sachet water. The reality is that factory-produced sachet water was generally considered to be “pure water” may have been a reason why 90% of the interviewees bought it despite it being more expensive when compared to hand-tied sachet water (90% also includes those who bought both hand-tied and factory-produced sachet water). Reasons for choosing specific sachet-water brands included the quality of the physical product itself, convenient availability, the brand name and company reputation. 40% of the respondents preferred “Voltic” sachet water. Voltaic, which has been in the Ghana market for the longest time, was established in 1995 and holds 65% market share in Ghana
Nowadays, more and more companies are crossing borders and reaching potential consumers from every corner of the world. It is imperative that companies understand there is no such thing as a one-size fits all approach for international trade. Companies must take it upon themselves to know their company and industry, determine the appropriate market entry strategy, select a target market, develop a business plan, and seek assistance to make the expansion process as smooth as possible.
In conclusion, it can be said that global marketing has been emerged very rapidly in recent years. It has provided various opportunities for the companies to expand their business to the other regions of the word. However, there remain certain environmental issues that need to be considered before entering in to the desired region. These issues can be resolved with designing the strong global marketing plans and strategies, the data for which can be gathered through conducting global market research. Despite numerous issues, one can easily say that globalisation has reduced the global reach of the organizations as well as customers. It would not be wrong to conclude that
The Coca-Cola Company is global well known company. The Company re-entered Indian markets in year 1993. The company had to leave earli...
The marketing team determined strategies and media for advertising the products in each of the prospective countries, as well as locations of sales. The team also made a thorough study of workforce availability.