NORTH SOUTH

UNIVERSITY
MKT -382
International marketing
Sec: 3
International marketing plan guide of BSRM
Submitted to:
Riasat Amir (Rst)
Lecturer
North south university

Submitted By:

Name
Hasan Mohammad Nasir
Naharin Alam Loba
Sadekur Rahman Sagor
Priyanjit Mazumdar
Rafiul Islam

ID
1230230030
1310033630
1230277030
1210057030
1210199030

ACKNOWLEDGEMENT

It gives us immense pleasure to be associated with this project. It was a joyous and exciting
learning process for all of us. It took a lot of efforts to do the project. However it would not be
possible without the help, inspiration and kind support of many individuals and organizations.
We would like to express our gratitude and sincerely thank them.
First of all we thank the almighty for providing everything required for the project. We thank Mr.
Riasat Amir, our honorable faculty member for believing in us and giving us the opportunity to
do this project. Without his help and guidance this would not be possible. His constant guidance
helped us to identify our failure points and coping up with those.
We would to express our gratitude to Mr. M A Hasnat, AGM of BSRM group. Despite his busy
schedule he provided us with enough resources, information and guidance that we needed to
complete the research work.
We would like to thank our parents and family members. Their kind consideration and
encouragement helped us to complete this project.
Last but not least we would like to express our special gratitude to our classmates who were
really co-operative and helped us throughout the project.

Executive Summary
BSRM is the countrys leading steel re-rolling mill situated in Chittagong which is one of the
highest GDP contributors. It was a great opportunity for us to do a project on BSRM in
international business. BSRM is a large company having four independent product plants. Beside
steel re rolling bars which is their core product, they produce high strength rebar and ribbed
wires. In the flourishing business of steel re rolling, BSRM has wide opportunities to prosper in
international business.
BSRM is a large production plan with net revenue around 1080 million taka. It has around 850
employees contributing to the daily production. Maintaining this number of employees and
facility needs expertise and financial support. The whole procedure of importing raw materials to
producing the final good requires responsibility and patience. BSRM has an effective and
efficient team of executives who are responsible for maintaining the daily rooster and
production. Mainly BSRM sells ready made goods, but in case of industrial buyers and large
orders they provide custom solution. They also take part in government buying and provide them
sample products.
In this project we have done the overall strength, weakness, opportunity and threat analysis of
BSRM for operating business in South Korea. We have also conducted some financial feasibility
analysis too. The marketing and placement policy for BSRM in South Korea is also included in
the research work. We have mentioned pros and cons of operating business in South Korea, what
issues could be faced and how to deal with those. Some suggestions is also provided to make the
existing business more attractive and feasible.

Table of content

Topic
Introduction
Research methodology
Situational analysis
SWOT analysis
Objectives
Recommended Marketing Strategy
Marketing Mix strategy and tactics
Planning Budget
Implementation and Control
References
Appendices

Page
2
3
4
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28
29
30
34

Introduction

International business deals with the transaction of products or services across the borders. After
we get got assigned to prepare an international business plan for a local company one of us came
up the idea of exporting steel bars. We chose the host country South Korea because the market is
still untapped by the major international suppliers. As BSRM holds the leading position in the
national steel re rolling market and has better reputation, we took the opportunity make
international business plan for BSRM in South Korea.
We have done micro and macro analysis for BSRM. What strengths the hold and what could be
done to make the product better. A PESTLE analysis for South Korea has also been done to
facilitate the proper placement of BSRM.
The marketing plan for BSRM in South Korea has been developed too. What process and
procedures should be followed to ensure the proper promotion of the products is also discussed.
Primary and secondary data have been used to support the project work.

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Research methodology
For our primary research we conducted an interview of higher personnel of BSRM group. We
asked him different questions regarding BSRM and its business procedure. How the work and
what are the rules and regulations they follow in case of promoting a product.
For our secondary research we looked in as many sources as we could. Most of them are internet
sites. We looked into BSRMs website to get the idea about their mission and vision and collect
their previous years annual reports.
Sources
www.bsrm.com
www.nationsencyclopedia.com
www.indexmundi.com
www.newworldencyclopedia.org

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Situational analysis
Company Analysis
BSRM is a public limited company founded in 1952 founded by the Africawala brothers. It is
also known as Bangladesh Steel Re-Rolling Mills. The company is founded in Nasirabad,
Chittagong. With approximately 850 employees, the major shareholder of the public limited
company is the directors having 70.87% of the shares. The general shareholders hold 13.37%
ownership of the company. BSRM is mainly financed by its shareholders and few international
investors. Sections and bar rolling, steel making, high strength rebar rolling and ribbed wire
productions are the factories in their portfolio. The core business of the company is steel re
rolling. It serves the customers belonging to the socio economic class A & B in Bangladesh.
Although BSRM focuses on individual selling, a large portion of the companies sells comes from
the industrial and government buying. The distinctive features of BSRM are Quality, Strength,
Durable and economical. High design yield strength of 500 Mpa (72500psi) (Min) steel requires
15% less steel in construction compared to Grade 60 re bars available in the market. Rural
demand picking up, investment in communication sectors and foreign investment due to cheap
labor cost has widen the way to become the market leader for BSRM having 35% of the market
share. But volatile market price of billets, political unrest, and gas and power supply shortage is
making it difficult for them to hold the position. There are almost a hundred or more companies
in this sector of business. Among these, RSRM, Rahim steel, KSRM, GPH Ispat and Anwar Ispat
are the main competitors of BSRM. It has 4 production plants in Nasirabad, Chittagong with
highly skilled workers and executives. Low production cost, being situated in the port city of
Bangladesh, modern facilities and skilled labors will help it to gain international reputations.
BSRMs high quality and reliable products helped it gain number of national and international
awards including Best enterprise of the year, D & B corporate awards and JBCCI award etc.
BSRM aims to maintain their leading position through producing best quality steel products,
high level of customer satisfaction and top notch supply chain network.

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Organizations Assets and Skills

The competitive strategies that brought BSRM in this position are:

Picking up rural demands.

Investment in the communication sectors.
Enhancement of Foreign Investment due to cheap labor.
Construction of Power plants.
Construction of mills and factories.
Export to neighboring countries.
Consumption of steel per capita is very insignificant.
low production cost than the international competitors
BSRM is situated in the port city of Bangladesh. This will help it transport the goods

easily to its desired location.

Local reputation will play a vital role in the international market place is promoted well.
The 63 years of expertise helped BSRM to achieve economies of scale. This will help to

keep the price low and fight with the host countries existing suppliers.
BSRM produces the best quality 500w grade steel which is certified by the international
standard testing organizations.

The price, quality and availability will make the existing and potential customers to choose
BSRM over its competitors.

MARKET ANALYSIS
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Political/legal/Institutional environment
South Korea is situated in East Asia, on the southern part of the Korean Peninsula, which extends
more or less 680 miles away from the Asian mainland. The only state with land boundary to
South Korea is North Korea, lying to the north with 238 kilometers (148 mi) of outskirt running
along the Korean Demilitarized Zone. Most of the part of South Korea is encompassed by water
and has 2,413 kilometers (1,499 mi) of coast line along three oceans. It is flanked by the Yellow
Sea to the west, toward the south is the East China Sea, and to the east is Ulleung-do and Dok-do
in the Sea of Korea (East Sea). The land mass of South Korea is approximately 100,032 square
kilometers (38,623 sq mi). 290 square kilometers (110 sq mi) of South Korea are involved by
water.
South Korean popular government made incredible steps over the previous decade. The last three
presidential decisions have been free, transparent.
The governing body of South Korea has had and keeps on impacting business advancement in
the country. Starting in the 1960s the administration of South Korea started to define a modern
strategy by which it built up target commercial enterprises and even target organizations. These
objective businesses and organizations got exceptional guide from the legislature to sustain their
development. Under both Presidents Park Chung Hee and Chun Doo-Hwan, five-year
arrangements were set up to guarantee the monetary prosperity of these organizations through
sponsorships, charge alleviation, and defensive duties. These approaches contributed to some
degree to the ensuing achievement of the Korean titan exchanging organizations or chaebols.
Taking after the monetary emergency, the South Korean government constrained the rebuilding
of the money related industry of the country.
South Korea has a stable government with a sustainable democracy and a healthy infrastructure.
President Parks administration has emphasized tackling corruption and corporate cronyism.(as
cited in AMB Country Risk Report ,2015 , p .3 , pera. 1)
Tough there are some concern remain between North Korea and South Korea over the fragile
economy of North Korea and its nuclear ambition. Additional concerns include Chinas
assertiveness in maritime claims. (as cited in AMB Country Risk Report ,2015 , p .3 , pera. 2)

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Legal Factors:
Ecological laws: South Korea has strict limitations with respect to harming the earth in light of
the fact that as of late environment got harmed essentially because of globalization.
Labor laws: South Korea is establishing a friendly and safe working environment for labors. To
do so they make sure that every worker gets a minimum standard wage, life insurance, safety
hazards and so many related facilities. Every investor even BSRM has to follow these labor law
strictly.

Environmental law: South Korea has strict restrictions regarding damaging the environment
because in recent years environment got damaged significantly due to globalization. BSRM as a
foreign investor can pursue the environmental law very easily, because they have already adapted
several policies to protect the environment.

Regulatory Environment:
Foreign companies engage in various activities especially in manufacturing sector in Korea
without much restraint but yet they have certain rules and regulation which all foreign industries
operating in South Korea weather by involving importing or exporting need to follow. In this
case it is easy for BSRM to enter the market .The regulations that BSRM need to follow is given
bellow:
Regulations on Foreign Investment and Technology Introduction act. One of the strategy by
south Korean government is bringing changes in service sectors along with the manufacturing
sectors, their belief is that no one country can gain economic or political privileges if it is not
developed enough in manufacturing sector. Korean government has set their policies in a manner
that always welcome foreign manufacturing businesses to invest in South Korea. Korean
government has set their policies in a manner that always welcome foreign manufacturing
businesses to invest in South Korea.

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Special Act on Designation and Management of Free trade and Economic Zones:
Eight Free Investment Zones (FIZ) has also been established to accommodate large-scale
FD, Including site/location support. Some of them are Masan, Gunsan, Iksan, deabul etc.
which are allocated near port and sea area with all kinds of logistic support. Our main
business process is importing steel in foreign market which needs enough location and
logistic support so that we can get in FIZ very easily.

The Foreign-investment Zone: Investor-selected zone to be designated as a Foreign

Investment Zone. Here all external facilities are available, close by and cheap to perform
better such as communication, transport, port, airport etc.

Foreign-capital invested companies and corporations shall be treated equally as Korean

nationals and Korean companies and corporations in all their business operations.

Financial Investment Services and Capital Markets Act. : South Korea offers
manufacturing businesses a combination of tax incentives and loans to invest if it is using
High technologies.

Foreign Exchange Transactions Act: This act made it easy for every foreign investor in
South Korea to transfer their money to the home country as well as bringing invest from
that country. This also protects investors from fluctuating dollar rates.

Tariff and Non-Tariff Barriers : South Korea reduce its tariff and non tariff barriers to
trade as well as to encourage inward foreign direct investment .But the Custom tariff is
the principle instrument of South Korea trade policy . It accords substantial and highly
varied levels of protection at the border to domestic market and is therefore a potentially
important obstacle to the efficient allocation of recourses and therefore sustains growth.
Also the average of MEN (Most-favored-nation) tariff is higher than in most other
industrialized countries.

Certification Requirements:

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Intellectual property: In South Korea, business in steel market is very competitive. There are
lots of emerging steel businesses nowadays in Korea. As BSRM is going to start doing business
in South Korea, so the risk is pretty high. In that case strong IP rights can reduce the risk to a
very large extend.
The Korean Intellectual Property Office (KIPO) has acquired the status of an official member
state by joining all four multilateral conventions on international classification of intellectual
property rights administered by the World Intellectual Property Organization (WIPO).

Patent
Patents are exclusive rights granted to inventions and are protected by the Patent Act. Patents are
registered with the Korean Intellectual Property Office (KIPO). KIPO provides information
about the South Korean intellectual property system.
For a patent to be granted, the technology must:

Be capable of industrial application.

Be novel.

Contain an inventive step.

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The BSRM can seek injunctive measures and/or damages from a court against infringers. Courts
can impose the following penalties for infringers:

Preliminary or permanent injunctions.

Damages.

Restoration of business reputation of the patent owner.

Confiscation of material or facilities related to the infringement.

Length of protection: Protection starts when the patent is registered and lasts for 20 years after
the filing of the patent application. The length of protection can be extended for five years under
special circumstances.
So, any innovative technology or design by BSRM would be protected by KIPO for at least 25
years, which is lot for a business like BSRM to capture the whole market using those technology
and designs.
Other notable IP rights relate to confidential information (trade secrets) and utility models. A
trade secret is information of a technical or business nature that can be used in business
activities, including production or marketing methods.
Regulation for Packaging and Labeling: South Korea is very has some strict rules regarding
the packaging and labeling of imported products.
For packaging any foreign company has to get certain permission from its Ministry of
Environment.
The labeling for the entire product shall be written in Korean, even allowing the supplementary
indication in English. Labeling also requires:
-

Product Name

Name and Address of Korean Manufacturer, or Importer and Original

manufacturer in case of imported products

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Materials

Metric units of measurement and weight are required

Size or Volume

Production Number or Date (or Limited Using period)

Price (Who sells to the customer shall write the price)

Precaution notice .

(cited from Packaging and labeling regulation in South Korea | Commercial and industrial
norms in South Korea )
Economic Condition: South Koreas economic freedom score is 71.5, making its economy the
29th freest in the 2015 Index. Its score is 0.3 point higher than last year, with improvements in
property rights, labor freedom, and monetary freedom exceeding declines in the management of
government spending and business freedom. South Korea is ranked 7th out of 42 countries in the
AsiaPacific region, and its overall score is above the world and regional averages.
Over the past five years, South Koreas economic freedom has improved by 1.7 points, further
advancing the country into the mostly free category. The export-oriented, dynamic economy
scores above the world average in seven of the 10 economic freedoms. Openness to global trade
and investment has been institutionalized through free trade agreements, and the regulatory
environment has become more efficient and competitive.
Some Important information regarding the South Korean economy are given bellow:
Population: South Korea occupies the southern half of the Korean Peninsula in eastern Asia.
The population size of South Korea was estimated at 47,470,969 in July 2000.At present the
estimated growth rate is 0,6 percent which means the population has been increase to 51.1
million in 2015 .

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South Korea's population is ethnically homogeneous. With the exception of a small Chinese
community of about 20,000, the rest of the populations are ethnic Koreans. It is also a highly
urbanized society. (Cited in encyclopedia of nation /Asia and the Pacific / Korea, South, pp. 2).

GDP and Current and forecasted Economic growth:

The Gross Domestic Product (GDP) in South Korea is 41.7 trillion with 2.8% growth in 2014 .
The forecasted GDP for 2015 is 3.0 %, with future growth ranging from 3.0% to 4.0% in the
near term. Economic growth will be driven by an increase in external demand for Korean exports
and development in the industrial sector. (as cited in AMB Country Risk Report ,2015 , p .2 ,
para. 4).
Inflation Rate: Inflation forecast for 2015 is just above 1.0% in 2015, which is bellow the Bank
of Koreas target band of 2.5- 3.5%.(as cited in AMB Country Risk Report ,2015 , p .2 , pera. 6).
Unemployment rate: The unemployment rate remains low at approximately 3% and GDP per
capita remains high at over 28,000 USD. South Korea is rapidly becoming one of Asias most
affluent countries. (as cited in AMB Country Risk Report ,2015 , p .2 , pera. 7).
Interest rates: Interest Rate-Interest rate is 2 % in South Korea for the manufacturing business
means if any investor take loans from bank, the investor will have to pay 2 % of that amount of
loan as interest.
Others: The government welcomes foreign direct investment with a strong combination of free
markets, pro-industrial development policies and excellent communications and transportation
infrastructure.

Social and Cultural Factors:

Confucian Influence:
South Korean people strongly believe in Confucian tradition which highly emphasize on
education, authorities and those who are older. (as cited in Doing Business in Korea : Business

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Etiquette ,para .1).As they are strong believer of this tradition .they give much importance to
family as well as business.
Business Culture:
South Korean people believe in collectivism. They have a strong relationship with their family.
They consider their company or business also their family so they try to have strong relationship
among the workers or investors .They prefer to do business with the people whom they knew
very well.
When it comes to International business they always want that their foreign investor know more
about their Korean culture. They also want them to know in personal level. They want to
socialize with their foreign investors outside the business hour especially in social gatherings.
(Recited from Doing Business in Korea: Business Etiquette, pp .3) As they are very time
sensitive they also prone to do business with the people who respect time.
Language and culture:
Korean was originally written in Chinese now it also includes Turkish and Mongolian language.
(Cited from Scholastic report).
South Korea is strongly influenced by both Chinese and Japanese culture .Though it shares its
traditional culture with North Korea, but both have developed some different forms of culture
since the separation.
Social Stratification:
South Korea has class system among them and family background, education and occupation are
major factors that are working behind this class system .But the main symbol of their Social
status is house and location of the house. ( as cited in country and their culture / south Korean
culture .pera 36).
As our company BSRM is importing Steel and Iron Ore in South Korea, we are focusing on
these Individual social trends.
Demographic Trends:
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As already mention above in Socio-cultural factors that South Korean has strong class system
among them which can be identify through the family back ground, education and occupation.
60% South Korean people belongs to middle class people and among them 83% send their
children to the college for higher education. ( as cited in country and their culture / south Korean
culture .pera 36).
According to country and their culture / South Korean culture, South Koreas major symbol of
class stratification is house and its location of house .Even according to the government
classification residential space between 18 and 25.7 square feet is considered as medium-sized
housing. So, People belong to middle and upper-middle classes in South Korea tend to live in
apartment units of over thirty square feet.
As we can see that the South Korean people give much emphasize on their lifestyle which
mainly depends on housing sector thats why their construction sector is booming in recent years.
In this case our company, BSRM which are importing high quality Iron and Steel Ore are mainly
targeting this demographic trend to enter in South Korean market.

Technological environment
South Koreas development over the last half century has been nothing short of spectacular. Fifty
years ago, the country was poorer than Bolivia and Mozambique; today, it is richer than New
Zealand and Spain. For 50 years, South Koreas economy has grown by an average of seven
percent annually, contracting in only two of those years.(Recited from The Backwater That
Boomed by Marcus Noland)
To call South Korea an emerging market, therefore, is a bit of an anachronism. The country is a
rich, technologically advanced, mature democracy with an impressive record of innovation,
economic reform, and sound leadership. Yet South Korea is not exactly a developed market,
either. The value of its exports plus imports (at $1.25 trillion a year) exceeds its national income
(at $1.1 trillion).That openness, along with the lack of protection provided by a bloc such as the
EU, subjects South Korea to greater market volatility than other major industrialized countries
and presents some serious challenges. So, too, does its highly concentrated corporate sector,
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aging population, and politically dangerous neighborhood. South Korea may well be more
dynamic than some developed economies, making it attractive to investors, but it is also much
riskier.(The Backwater That Boomed by Marcus Noland).
The technological progress of South Korea is given bellow:
Governance and Innovation
Much like Japan, from the beginning of its economic development path the South Korean
government selectively restricted FDI in favor of heavy borrowing and obtained foreign
technology through imitation and technical agreements. These policies allowed the Koreans to
maintain control over the industrial base, encouraged investment in R&D from an early stage,
and increased the likelihood of positive domestic spillovers.
The Ministry of Science and Technology (MoST) , established during the years of military rule,
was one of the first government ministries devoted to S&T in the developing world. Until the
late 1980s, innovation policy was mostly conducted through MoST; subsequently the Chaebol
began to partner with the government in shaping the direction of South Korean S&T.
In (19631972) set up a Ministry of Science and Technology (one of the first ministries in the
developing world dedicated to technological development)
They also established the Korean Institute of Science and Technology dedicated to applied
technology which is Koreas leading technical university today.
In (19721980) Policy decisions started coming from MoST (instead of the President) and the
Economic Planning Board (EPB)
Private sector starts playing a role by setting up the groundwork for the Daedok Science Town
(later called Daedok Science Valley)
(19801987) Leading exporter and technology power Chaebol became partners with the state
From (1987present) Private sector (chaebol/conglomerates) started taking the lead in
technology development.

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The Korean government has developed a robust science and technology capacity following two
parallel tracksthe creation of a state-led research and educational capacity and corporate
research and development efforts by the countrys large conglomerates. It has also taken a strong
and consistent interest in partnering with industry to promote modernization and economic
growth.
Current Innovation Leadership Structure
The S&T policy governance structure in South Korea in many ways resembles that of the United
States. The two main advisory and coordination bodies serving the executive branch are the
South Korean National Science and Technology Council (NSTC) and the Presidential Advisory
Council on Science & Technology (PACST).The two ministries most responsible for setting
innovation policy in South Korea are the Ministry of Education, Science, and Technology
(MEST) and the Ministry of Knowledge Economy (MKE). MEST is the most influential, as it is
primarily responsible for formulating policies for S&T development and R&D investment and
supporting the nations universities and research institutes (both government and private).
Korean government policies have increasingly focused on fundamental science (as opposed to a
historical emphasis on technology development). Gross domestic investment in R&D has grown
at 10.5% annually since 2002. South Korea spends 3.5%of its GDP on R&D (NSB 2013) which
is the highest among the OECD countries, totaling USD $56 billion in 2012. The governments
share accounts for 24% of this, with industry covering Impact of Innovation Policies.
Impact on Innovation Policies
The governments investments have been largely effective in spurring S&T-based innovation and
progress. The 5-year plan for S&T innovation in the 1990s and the basic S&T plans in the 2000s
were developed with the aim of improving capacity and funding for R&D, developing an R&D
workforce and increasing funding for basic science. The policies have resulted in increased R&D
intensity, a rise in patents and publications, and an increase in high-technology exports, all of
which have contributed to Koreas shift from a fast follower to a leadership position. Thbalance
(NSB 2013, Appendix table 4-44).
Business and Innovation
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The Korean economy is heavily reliant on manufacturing, which makes up close to 27% of the
economy. When measuring manufacturing value added as a percentage of GDP South Korea
ranks second after China. The industrial structure is primarily composed of chaebol, the small
and medium-sized companies that primarily comprise the supply-chain, and service providers for
the chaebol and other service-providing small industry. Innovation in the Korean economy is
primarily driven by the private sector, which is dominated by the top conglomerates (Samsung,
Hyundai, POSCO, and LG). These chaebol typically span a broad spectrum of related and
unrelated businesses.

Cycles in Technology Development

Koreas innovation system is characterized by a capacity to learn, produce, and implement high
quality processes to produce high quality products; its leadership in manufacturing; and its
significant investments in R&D. South Korean companies demonstrate a capacity for rapid dolearn-improve cycles that allow them to enter the market at the low end of the technology and
flood the market with a large amount of lower cost products to secure the market.
Today, the top South Korean companies compete on high-skilled labor and high quality products
not just by incremental innovation on rival technologies (their former fast follower position), but
by steadily increasing R&D investments and focus on innovation which are moving them
towards a first mover position in some industries.

Natural Environment:
According to Scholastic report South Korea is poor in natural recourse and it is also one of the
countries which is very prone to earthquake .So its really become difficult for South Korea to
produce high quality Iron and Steel ore .But in recent decade the income of People rises so the
number of infrastructure and institution increased .As income rises the lifestyle also increased.
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So people who are in middle class and upper middle class are affording luxurious house .So the
Construction sector of South Korea has emerged rapidly.
But due to the inefficiency of natural recourses its really become difficult for South Korean iron
and steel ore industry to provide quality product to their consumer at low cost .
As we, BSRM using Italian technology which is high earthquake resistance at low price it will be
easy for us to get a great response at South Korean construction Industry.

Physical Environment:
South Koreas infrastructure has expanded since 1960s. South Korean government and the
private sector is involved in the financing, construction, and operation of various infrastructure
projects and services. Over the first 20 years of twenty first century the government will spend
more than 300 billion US dollars on airports, roads, railway and Meg-resorts. South Korea also
has an extensive and well-kept system of roads. In 1998 they had 64808 kilometers of paved
roads, it was including 1996 kilometers of expressways and 22182 kilometers of unpaved roads.
The number of private cars rose from fewer than 500,000 in the early 1980s to 7.581 million in
1999 when there were also 2.1 million trucks and 749,000 buses in use. To deal with the growing
pressure on roads, the South Korean government has initiated a multibillion dollar project to
expand the highways.
South Korea has a growing power generation system that provides electricity for private and
commercial needs. During 1990s total production increased from 184,660 ghw in 1995 to
239325 ghw in 1999, outpacing demand by a comfortable level. In 1998, the percentage of
electricity generated by various methods was as follows: fossil fuel generators, nuclear-powered
generators, hydroelectric generators, and other. The share contributed by nuclear power
generators rose to 42.8 percent in 1999.
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In South Korea the telecommunication is among the best, most modern and fastest growing in
the world. The number of fixed telephone lines increases from 763200 in 1973 to 20,96300 in
1999, while the number of cellular telephone lines jumped from 1,641,000 in 1995 to 12,019,000
in 1999 an eightfold increase over a 5 year period. In 1999 there were at least 11 internet
providers, with 14 million internet users in 2000. South Korea is ranked 3rd in the world. There
were also 106 AM, and 97 FM and 6 short wave radio stations and also 121 television stations in
South Korea.
There are about 3000 islands lying off the western and southern coasts of South Korea. About
seventy percent of the South Koreas land area is mountainous with almost none of it is arable.
The rest thirty percent that is arable, the lowlands are located in the west and southeast. The total
area of South Korea is 38, 462, 49 square miles.
There are eleven ports located throughout the south and west seas in South Korea. Those can
accommodate cruise ship and are well known for their facilities and amenities as cruise docks.
The ports on the deep waters of the east sea can accommodate up to much larger ships. Tourists
are impressed by the unique culture of Korean and the co-existence of tradition and modernity
found throughout the country. The worlds most renowned cruise companies such as royal
Caribbean and cost cruise have called upon Korean ports. By 2010, sea bourn cruise, the worlds
most luxurious cruise ship, is expected to call in Yeosu, Mokpo, Busan, Incheon, and Jeju.
Busan is Koreas biggest port which contain world class facilities. Busan is Koreas frost port
developed in 1876, and today it is the second largest city and the number 1 trade port in South
Korea. It has become the Koreas largest port that can berth one 200 ton ship and 50 other small
and large vessels simultaneously.
Korean air founded by the government in 1962 and privately owned since 1969, served as South
Koreas solo airline until 1988. Korean Air serves major domestic routes, offerings international
service to japan, the United States, Canada, West Germany, France\, Hong Kong, Iraq, Malaysia ,
Saudi Arabia, Singapore, Switzerland, Taiwan, Thailand, and the United Arab Emirates. A second
carrier, Asiana Airlines established in 1988, served three domestic cities. The two airlines
combined offering 1700 flight a week internationally in 204, maintaining a combined fleet of
over 180 passenger and cargo aircraft. By the beginning of 2004, they served 95 cities ranking
fifth in the world for cargo carried and twelfth in the world to total number of passengers. In
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1999, Korea had 103 airports small and large, with paved runway from, 3047 meters to under
914 meters. Airports with unpaved runways numbered 36 measuring from 3047 meters to under
914 meters. Heliports number is 203.
The total railroad passengers in South Korea have decreased since 1990s. Despite the continuous
road construction, railways still constitute one of the primary means South Koreans travels over
long distances within the country. In 2002 KNR maintained 3124 Km of track, increasing to
3472 Km in 2005. There are four classes of train in South Korea, KTX, the Korean high speed
railway system, and travel from downtown Seoul to downtown busan faster than an airplane.
Another one is Saemaul-ho service, this one is the most comfortable seating service.
Mugunghwa-ho service is the other one; this is a popular one with most Koreans, stops most
stations and offers a mixture of reserved and unreserved seating. The last one is the Ocmmuter
service, the slowest and cheapest of the three, it stops at all stops, and offers no reserved seating.
Seouls subway system is the oldest system in the country. It was established in 1974. In 2007
eight lines extend 178 miles with 263 substations transporting 5.6 million passengers a day.
South Korea is very well developed country. The percentage of urban population was 91.6 in
2013. The urbanization rate is 0.3 percentages.
The level of literacy is very high in South Korea. 97.9% of the population are literate. From their
99.2 % are male and 96.6 % are female.

Nature of Demand:
Due to the scares of natural recourses the Iron and Steel ore industry in South Korea are facing
few problems which increase the demand of it .So it become easy for our company to enter in to
the local market.
The important features of our product are given is below:
Product features /benefits: Our product is extreme 500w which is not only flexible but also
earthquake resistible.
Uniqueness and design: Generally Iron and Steel Ore is never wield together but with Extreme
500w it can be done.
Price: Price of Extreme 500w comparatively low form the local competitors.
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Reliability: BSRMs Extreme 500w is manufactured with Italian high DANIELI technology, so
it has high longevity and reliability rate .

Size of Extend
According to (countrystudies.us/south-korea) , that In 2008 South Korea was the world's tenth
largest steel producer, accounting for 2.3 percent of world steel production. South Korea
continued to expand crude steel production--19.3 million tons for2007, up 14.9 percent over
1987. It also says that domestic demand for steel products increased 8.5 percent from 15 million
tons to 16.3 million tons over the same period because of the growing demands of South Korean
industry

Stage of product Life Cycle:

In South Korea it will be in Introduction stage. In Bangladesh our product is in Maturity stage
but in South Korea we will enter as market follower, so it will be an introduction stage for us.
The demand of steels in South Korea is increasing. So there should be an apparent changes over
time. This product is established in Bangladeshi Market for about 30 years. Right no they are the
market leader in Bangladesh. This is a highly involved product, so the buyer should consult with
experts before buy this product.

Competitor Analysis:
In 2014, South Korean imports were US$525.6 billion, up 23.6% since 2010. South Koreas top
10 imports accounted for over three-quarters (75.6%) of the overall value of its product
purchases from other countries.
South Korea export was amounted to US$573.1 billion during 2014 up 22.9% since 2010. South
Koreas top 10 exports accounted for 86.3% of the overall value of its global shipments.

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(As cited from worldstopexports.com/south-koreas-top-10-imports)

China is mainly the major exporter in South Korea in Iron and Steel sector. South Korea also
imports Iron and Steel Ore from India, Japan and Taiwan too.
Major Competitive Manufacturers:
South Korea also has its own Iron and Steel Ore industry and these are PASCO, Hyundai steel,
Dongkuk.
The product that we are going to export from our company BSRM to South Korea has a
competitive advantage of low cost .We are going to provide South Korean construction industry
high quality Iron and Steel Ore at a low price from their competitors .

Competition Analysis
Brand Competitors: BSRM has some competition in South Korea. The biggest competition that
BSRM going to face is brand competition .South Korea has few well recognized brand like
POSCO , Hyundai steel and Dongkuk which are already popular in local market .
Product Competitors: As South Korea already has few Iron and Steel manufacturing company
BSRM has to face competition in terms of same product at South Korean local market .

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SWOT analysis of BSRM

Strength:

Market leader: BSRM is the number 1 steel brand in Bangladesh. They hold 22% of
market share of the total steel market in Bangladesh

Largest & oldest manufacturer: BSRM starts their business in 1952which was the first
steel re-rolling mill in Bangladesh.

Experienced company: BSRM has 63 years of experience. They are the most
experienced company of steel in Bangladesh.

Financially very well reputed: As they are a profitable company and one of the oldest
company so they are financially very strong and very well reputed company.

Distribution network: Distribution of BSRM is very strong. They have 600 dealers and
11 offices all over Bangladesh.

Highly skilled employees: The employees and labors of BSRM are highly skilled.

Strong marketing lineup: BSRM has developed a sound and an effective marketing
policy to share knowledge about their products with design engineers, thus creating more
awareness in the minds of the customers.

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Modern Equipment & Technology: The BSRM X-treme 500w project has been
conceptualized by the German consultants Badische Stahl Engineering and the
complete plant and machineries have been supplied by Danieli Group, Italy which is one
of the largest suppliers of equipment and technology.

Production capacity: The recent production capacity of BSRM industries is 1 lakh ton
per month.

Weakness:

Price: Price is higher than the other steel companies of Bangladesh

Power crises: BSRM have no own power plant. In Bangladesh the power crisis is
increasing day by day. As BSRM is a heavy industry, it needs lots of power supply and
gas in daily production. As the government is failing to make an uninterruptable supply
of power and gas the production is declining.

Opportunities:

Huge scope to increase market share: Since production capacity is too high, there is a
huge scope for BSRM to increase their market share.

International Scope: As BSRM is internationally renowned company so its have a

strong possibility to export steel products in India, Nepal, Myanmar, South Korea,
Vietnam, japan etc.

Different types of steel products: BSRM has a huge scope to increase production of
different types of steel products like steel plate,

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Threats:

New competitors: In recent days there are some new companies have started their steel
production, and they are becoming stronger. For example: AKS steels, KSRM.

To retain skill employees: The competitors are trying to take away all the skilled
employees from BSRM.

Factory located only in Chittagong: All the factories are located only in Chittagong.

Commissions: The competitors giving more commissions to the dealers.

Implications of SWOT Analysis:

BSRM will expand its activities in South Korea. They will offer the quality product in a low
price. This is the biggest competitive advantage of BSRM.
SWOT analysis is customer- focused

How do the identified strengths enable the company to meet customers needs?
-

BSRM is the most reliable company in Bangladesh. This is a highly involved

product. So the customers need a reliable company to choose the product. On the
other hand BSRM use the most advanced technology and highly skilled
employees, which also increase its reliability and. Customers can trust the
products of BSRM.

How do these strengths differentiate the industry from competitors?

-

In South Korea we will offer the same product in low price. Because we have low
labor cost.

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How do any weakness prevent the company from meeting customers needs?
-

The power crises are a big weakness for us. Sometimes for this problem we
cannot deliver products on time. Also, sometimes Bangladeshi customers cannot
but BSRM products because of the high price.

How can these weaknesses negatively differentiate the company from competitors?
-

In Bangladesh the competitors can offer in low price to capture the market of
BSRM.

How can those opportunities relate to serving customer needs?

-

In Bangladesh and also in South Korea the demand of steel is increasing day by
day. So opportunities for BSRM to increase their market is very bright.

How can the company catch and keep the opportunities?

-

BSRM can expand their production more to increase their market share. We can
also try in different international markets. And last but not the least they can build
a different new factory for new steel products.

How can the company prevent those threats from limiting its capabilities?
-

The company can give some extra benefit to the skilled employees. They can also
build factory more in some reasonable areas so that their distribution will be easy.

SWOT matrix

Strength

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Opportunities

Market leader

Largest & oldest manufacturer

Experienced company

International Scope

Financially very well reputed

Different types of steel products

Distribution network

Highly skilled employees

Strong marketing lineup

Modern Equipment & Technology

Production capacity
Weakness

Huge scope to increase market

share

Threats

Price

New competitors

Power crises

To retain skill employees

Factory located only in Chittagong

Commissions

BSRM is the market leader and there production capacity is increasing, also they have the
modern equipment and technology so, there is a huge scope to increase market share. As BSRM
is a very experienced and well reputed company, also they already an international brand so they
have a huge scope to increase their market internationally. BSRM also can start produce different
kinds of steel products, for example: steel plate etc.
We can see the weakness of BSRM in Bangladesh is price, but in international market they can
use this as their strength, since their labor cost is low, so they can offer in a low price in
international market. BSRM should build their own power plant to remove the power crises
problem.

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Objectives
International objectives:
Why the company seeking to expand internationally?
BSRM is the market leader in steel sector in Bangladesh. They have the 22% market share in
Bangladesh. They are the most established and well reputed steel brand in Bangladesh, so now
they want to expand their business internationally. BSRM started doing international business in
south Asian country India. Now they want to enter the market of the northeast Asian market by
staring their business in South Asia.
Cost position will be improved through economies of scale in future. There is a factory in
Mirshorai which is under construction and it will be handed over within just six months. This
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factory will only produce billets which will cut more cost than the current one.

BSRM can expand its market if it produces or stretches its product line by introducing more
products like steel plates, automotive steel, stainless steel etc. The market will be diversified
among new segmentation.
Market objectives:
We will enter in South Korea as a market follower. Our main target will be to enter North East
Asian steel market. For that South Korea is the best choice as it is growing significantly. The
demand of steel in South Korea is increasing day by day. So it is our best chance to enter this
market. Our best competitive advantage is, we offer the same product at a low price so that the
return on investment will be positive.

Marketing strategy
Segmentation:
Construction builders
Retired personnel
Architectects
Head of the Family
Business Consumer

Target Market:

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It is a high involvement product because it is usually bought once in life, when people make
buildings. So our target customer is mainly are them who want to build their house with pillers of
safety.

Market Entry Strategy:

We will follow an indirect exporting strategy, an export strategy where we will find single or
multiple dealer and they will be responsible for our distribution in return they will get some
incentives in terms of percentage of sales

Marketing Mix Strategies and tactics:

Product Modifying:
As it is a steel bar which will be used for building or constructions, it doesn't need to modify. The
features and benefits already shows the premiumness of the brand. Brand focus is basically
providing
extreme
strong
steel
bars
with
assurence
of
great
quality.
Product Positioning:
BSRM Xtreme will set a position in consumers mindset that it provides one of the best quality
products with low prices. The quality of the product meets international standards like ISO
9001:2000 certification. It also associated with UK based CARES product quality and
registration which aims to ensure consistence of quality .The manufacturing plant of BSRM is
Danieli , world's no. 1 company for setting up manufacturing plants which add special value to
the product . Some of the key attributes of BSRM Xtreme :
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Strength-High design of yield strength of 500 mpa (72500psi)

Quality-the bars are needle straight

Durability- the bars have superior bend-ability and can be bent safely without cracking

Economical-Xtreme bars has the premium quality at a lower price.

Product line:
BSRM has 4 types of product line which are

Xtreme 500W

Grade 60

Xstrong 345

Flat bar spring steel

But we will drop second three lines and introduce only Xtreme 500W to the South Korean
market.

Developing Branding Approach:

Branding Approach will be "premium quality with low price ".
Tailor product labeling:
All the steel bars have its brand name and slogan. For Xtreme 500w it is feel safe with extreme
inside " indicates premium quality of the product .
Product or brand name registration:
Product or brand name will be registered according to government and trade association rules. It
will remain unchanged in terms of language.

Promotion:
Communication materials or messages will be translated in Korean language.
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We will use Push strategy as we just entered the market so we have to capture market shares
and also we are offering low price than competitors.
Personal selling will be used to hit our target market. Retired business personnel, Construction
engineers will be our target market to do personal selling.
We will use print ads which will be shown on newspapers, magazines.
Branding will be family based as they prefer according to their culture but target market will be
the head of the family.
We will attend the trade shows and conferences about civil engineering and architectures
conferences.
Housing Brand Fair
Kyunghyang Housing Fair
Korea Metal Week
We will translate our original copy into target language to brand our product. All the slogans or
messages will be translated into Korean language which will show respect to their culture.
Feel Safe with Extreme inside will be (naebugeugdanjeogeuloansim)
We will sponsor some events or competitions in architectural or civil engineering department of
different Universities. There we can attract the faculty members of those department and make
them understand and testify our product as BUET did.

Price determination:
We will choose penetration pricing as a pricing strategy because we are entering the market as an
exporter. Currently we should target to catch market share from competitors because otherwise
we won't survive in the market. One of our competitive advantages is premium brand with low
price. So we will offer similar quality of product as our competitors but with low price.
Price level will be discounted compared to competitors.
Product Name

Product Size

DEFORMED
8 mm
BAR Xtreme500w
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Price ( BDT Price ( WON Pascos price

per ton)
per ton )
53000
789665.52
880500

Hyundais
price
875000

DEFORMED
BAR Xtreme500w
DEFORMED
BAR Xtreme500w
DEFORMED
BAR Xtreme500w
DEFORMED
BAR Xtreme500w

10 mm to 25 53000
mm

789665.52

890000

888000

28 mm to 32 53500
mm

797994.86

925000

915600

40 mm

53500

797994.86

928000

923400

50mm

58000

864161.90

955000

966700

Basically there won't be any price variation in terms of geographical margin because we will
target the urban cities only.
Certain amount of margins will be given to distributors or agents. The percentage will be
determined through negotiations with distributors. For example in India, distributors get 5% of
profit every specific duration of time.
Terms of sale
Terms of payment will be letter of credit.

Distribution:
Distribution channel is one of the most important characteristics in marketing a product. If
customer cannot reach the product then all other attempts to promote the product like
communication strategy, low pricing, product developing will fail. As steel bar is a high
involvement product we will choose intensive distribution to reach our target customers. Our
first strategy is too aware our customers about our products. There are lot of products which are
offered by our competitors so in order to survive in the market and catch market share we will go
for indirect export strategy. As we are new in the market and lack the knowledge of local
customers mind, choosing a distributor or dealer will erase that disadvantage with minimal cost
of establishing business location by our self .There are many strong network of distributors in the
market but we have to attract them with our competitive advantage and their own benefits of
selling our product. So there are some things what should be on our check list 33 | P a g e

Past performances and proven records of selected dealer should be analyzed properly.
Can be done by some internal surveys or watching their contacts.

Personal contact with our target customer is very important. Also that how they acquired
our customers or serves our customer is equally necessary or else relationship wi th the
customer won't be built.

Geographical Extent of the distributor should be reachable to our target customers or else
we will lose them.

Communication with end user through electronic mail or social sites is also important.
Whether they are successful to maintain them self into customer mind.

Technical Competence should be up to date. It is essential to record and maintain

customer and sales data which is used to determine success or failure with reasons of
marketing strategies.

PLANNING BUDGET

Through budget planning we will be making sure that we are spending less than we are bringing
in and planning for both the short- and long-term. It's a proactive approach, rather than a reactive
approach, of managing the companys money.
Our plan of attack is simply to achieve as many market shares as possible in a durable time. The
total budget of this project that has been set is 50 million BDT. It might sound huge but for a
country like South Korea and keeping the exchange rate into account, it is the proper budget.
Dealers

B2B Personal

Trade Show and

Print and Digital

Commission
BDT 1 M

Selling
BDT 1 M

Conference
BDT 1.5 M

Media
BDT 1 M

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Operation gears
BDT 0.5 M

Planning Assumptions

Like all other assumptions, this planning has some assumptions as well. First and the most
important assumption of this whole budget planning process is that the exchange rate will not be
fluctuating more than 5 %; Secondly there will be no big natural disaster in next 5 years.
Forecasts
Year
Expense
Market Share

2016
BDT 0.5 M
2%

2017
BDT 1 M
5%

2018
BDT 1.2 M
7%

2019
BDT 1.3 M
10 %

2020
BDT 1 M
12 %

While forecasting for upcoming five years, we have kept the assumptions in mind. In the starting
year i.e. 2016, the expenses were only to reach to the right distributers. In the following years,
other promotion activity caught up.
Cost Structure of South Korean Steel and Iron Industry

Domestic demand grows by impressive 122% over review period with market reaching
Won275.5 trillion in 2013. Imported production rises by 12% in 2013 giving a turnover of 133%
from 2007, outperforming market. Exports lose importance as source of revenue, generating 12%
of turnover. Production revenue expected to decelerate in growth.

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Formal Contingency plan

Our first target to enter into the South Korean market by dealing with the local dealers. If
somehow our plan will fail, then we have a contingency plan. We can make join-venture with
some local companies like Dongbu, Hyundai steel etc. We can also become supplier of those
companies. We can also introduce some new products like steel plates, automobile steel Etc.

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References

Marketing Strategy - Differentiating and Positioning the Market Offering.

(n.d.). Retrieved November 21, 2015, from http://museummadness.blogspot.com/2011/11/marketing-strategy-differentiating-and.html
South Korea Literacy. (n.d.). Retrieved November 21, 2015, from
http://www.indexmundi.com/south_korea/literacy.htm
Transportation in South Korea. (n.d.). Retrieved November 21, 2015, from
http://www.newworldencyclopedia.org/entry/Transportation_in_South_Kore
a

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 Geography of South Korea. (2008, March 29). Retrieved November 21,

2015, from http://geography.howstuffworks.com/asia/geography-of-southkorea1.htm
Korea, South - Infrastructure, power, and communications. (n.d.). Retrieved
November 21, 2015, from
http://www.nationsencyclopedia.com/economies/Asia-and-thePacific/Korea-South-INFRASTRUCTURE-POWER-ANDCOMMUNICATIONS.html
Index of /resources/FinancialInformation. (2014, December 30). Retrieved
November 21, 2015, from
http://www.bsrm.com/resources/FinancialInformation/

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