INTERNATIONAL & GLOBAL MARKETING GLOBAL MARKET ENTRY PLAN

INTERNATIONAL & GLOBAL MARKETING GLOBAL MARKET ENTRY PLAN

General Objective of final course requirement for MARK 37: The purpose of this research paper is to develop systematic planning by writing an export marketing plan for a sustainable and profitable export market. Basically, it is a set of instructions, backed up by logical analyses and considerations.

I. Industry Profile A. Starting from 4000 BC, The Romans and Greeks used mercury and lead that was applied in their faces. The Chinese used gelatin, beeswax and egg. Japanese geisha wore lipstick made of crushed safflower petals to paint the eyebrows and edges of the eyes as well as the lips. From the vast history of cosmetics, it can be said that women have always taken in account their appearance and representation to the public. Today, they have invented the state of the art device, iBeauty. iBeauty has widely spread for these past few months in countries such as Japan, Korea and China. These are all present in talk shows, subways, media, and newspaper ads. It has been the talk of the town. The company believed that the Asian community is able to adapt to this kind of product and the Philippines may be one of then that is open to this idea. B. Global Market Analysis 1. Economic environment The Chinese government has implemented a VAT Export Rebate of 11 percent in every export product a company engages. This encourages much Chinese local companies to strive to do exporting and thereby also improving the quantity and quality of their products. 2. Cultural-Social environment Every woman wants to be beautiful regardless of culture or race. They even spend thousands of dollars to get a nose lift of or a facial just to look younger and blooming. With this in mind, iBeauty can be one of the products that Filipinos might be interested in since it promotes physical hygiene and personal care. 3. Political-legal environment The importance of China maintaining good relations between its neighboring countries is like an investment used. It could be observed that Chinese foreign relations play a rather big role in the aspect of foreign import and exports of goods. In this case, the iBeauty product.

INTERNATIONAL & GLOBAL MARKETING GLOBAL MARKET ENTRY PLAN 4. Financial environment Chinas financial economy is rather stable at this state. This is confirmed from Peoples Daily Online Among major Chinese cities compiled recently by Chinese Academy of Social Sciences, Shanghai has ranked the first among the top 50 cities in China in its financial environment... generally speaking financial environment in eastern cities is better than that in western part. 1. China government reacts rather fast in times when adjustments are needed. So inflation and deflation in exchange rate is not really affected. This is an important factor for the company since we can forecast and maintain our product price given a stable foreign exchange currency. II. Company/ Product Profile A. Market Entry Strategy Online selling saves on operational, labor, and set-up costs. It reaches global audience, thereby increasing sales opportunities, open 24 hours, and can receive payment more quickly from online transactions.2 B. Marketing Strategies and Programs Greenfield Venture This strategy independently launches a new operation without involvement of a partner and has full control.3 1. Segmentation Value Chain

INTERNATIONAL & GLOBAL MARKETING GLOBAL MARKET ENTRY PLAN

Fig. 1 Value Chain for iBeauty product Primary activities:

Inbound Logistics-Includes receiving, storing, inventory control and transportation planning of the product. Operations-Includes testing of each product if there are no damages and defects. Outbound Logistics-The distribution of finished product to the sales agents warehouse Marketing and Sales-The activities associated with getting buyers to purchase the product, including: channel selection, advertising, promotion, selling, pricing, retail management, etc. Service-The activities that maintain and enhance the product's value, including: customer support, warrant replacements, repair services, and free testing of equipment. Support activities Procurement-Sourcing of products with competitive prices Firm Infrastructure-Includes management, legal, finance, accounting, public affairs, quality management, etc 2. Targeting The market for these products will be internet based customers. They are specifically female in gender and are teenagers and young professionals. Since the product is of good quality and performance, advertisement through word of mouth and loyalty of buyers will be an additional asset. 3, Positioning Our product, iBeauty has already been proven and tested by industrialized countries ie Japan, China and Korea; the goal is to create a good identity in the minds of Filipinos that these products are indeed effective. Videos from talk shows, TV advertisements

INTERNATIONAL & GLOBAL MARKETING GLOBAL MARKET ENTRY PLAN and testimonials from famous actresses can attest to these claims. The idea of getting scammed must be avoided at all times. A. Marketing Mix Decisions: Product iBeauty is the portable instrument for deep skin care by adapting nanometer ion technology a kind of advanced high technology. It can atomize the water skin care product on a tiny and quick basis, and form the soft essence skin care spray of the nanometer anion to spray onto the face. It can also penetrate into the basal cell layer of the skin with high efficiency to bring the skin long lasting care. It is adopted with the state of the art, special concussion and vibration technology so as to make the water skin care product be in nanometer size. Decomposing it to the ion in 0.25-0.5 micrometer and fast penetrate into the basal cell layer of the skin. It can be effectively and deeply absorbed and produce the most excellent effect of skin care and beautification.4 Technical parameters and specifications: Output Power: 2.2W Spray volume: 0.8mL / min Aerosol particles: 0.3m Distribution & sales Input Voltage: DC 6V (AAA 1.5V x 4 pcs) Red wavelength: 635 NM Blue light wavelength: 435 NM Water tank capacity: 3.2ML

Fig. 2 Distribution scheme for iBeauty Ten percent of the suggested retail price will be the commission fee for each item being sold by the distributor. Pricing programs 5

INTERNATIONAL & GLOBAL MARKETING GLOBAL MARKET ENTRY PLAN The following are pricing programs formulated for each trading scenario: 1. Target profit- to make a 30% net profit when all the other necessary costs are being deducted. 2. Seasonal discount- refers to holidays and special events where as to provide a special price to encourage buyers to spend more. 3. Discounted price to a reseller- provides and expansion volume through channels of distribution of the product. 4. Price plus shipping-refers to those out of town customers that are interested to purchase the product wherein shipping fee are not shouldered by the company. 5. Competitive pricing-when competitors enter the market; the company will be dynamic to adjust to the pricing so as to maintain the loyalty of its customers. Promotion Since we are targeting internet based customers, we have decided that we are going to set up a website that contains details and videos on the setup of how to operate the iBeauty. Videos will be also in the site so as to let internet users view in the comforts of their homes. Advertisement links will be posted in some famous online selling sites such as istorya.net and groupon.com.ph Another way we will promote the iBeauty is by having an in-store display with a working model. With the working model there will be a brochure for the customer to take with them and a board displaying all the information and details. Some stores that we have in mind to sell the iBeauty are pharmacies, and gift shops. As a company we feel that if we have some of our target market be convinced to try the actual product, we will be able to get personal testimony from our target market. III.Bibliography and references 1. http://english.peopledaily.com.cn/200606/04/eng20060604_270988.html 2. http://www.businesslink.gov.uk/bdotg/action/detail? itemId=1073792461&type=RESOURCES 3. Pg178, Understanding Business Strategy: Concepts and Case by R. D Ireland, M. A. Hitt, R. E. Hoskisson 4. http://ayjsq.cn.alibaba.com/athena/offerlist/ayjsq-sale-2-true-3586089.html#listViewBar Selling Online: Beyond Ebay By Donny Lowy http://www.ehow.com/info_7998099_strategies-starting-business.html http://useconomy.about.com/od/worldeconomy/p/China_Economy.html http://www.valuebasedmanagement.net/methods_porter_value_chain.html http://www.smithfam.com/news/oct00x.html http://www.witiger.com/internationalbusiness/culturalconsiderations.htm http://www.businessplans.org/pricing.html IV. Endnotes and annexes --end--