Академический Документы
Профессиональный Документы
Культура Документы
0 Executive Summary
The Easy UC Way Seminars (EZUC) has decided to enter the Tamil Nadu market through
a joint venture agreement to meet its objectives of international market expansion. Tamil Nadu
was the chosen region for market expansion because of its new popularity as the new Asian
power house. New foreign investments and the growth of Indias economy have increased the
standard of living in India making it suitable for the training industry.
EZUC will adopt a straight extension strategy and only introduce one seminar to the
Tamil Nadu market. This seminar will target the middle to high income earners who are working
professionals. EZUC will position itself as a high priced, high quality training provider. Price
skimming strategy would be adopted where the seminar will be priced at RP (Rupees) 13,900.
EZUC will be at its introduction stage in the product life cycle. Thus, the promotion mix will
focus heavily on advertising and public relation activities to increase the level of awareness. Sales
promotion activities will also be conducted to increase initial sales. Because EZUC is a high
quality service provider emphasis will be placed on training staff and building efficient processes.
The projected revenue for the first year is RM 210,748 where the company will make a
loss of RM 82,692. EZUC will continue to make a loss of RM 18,819 in year 2. Year 3 will
produce profit of RM 18,445. Projections show a loss during the first two years because EZUC
will still be at its introduction stage in Tamil Nadu. There is expected to be a lot of marketing
costs during the early period. EZUC expects a market share of 20% of total working professionals
in Tamil Nadu. EZUC expects a total sales volume of 180 participants in the first year which will
increase to 300 participants by the third year of operation.
A total investment of RM 300,000 will be needed in the first year of operation. There will
be no return in investments for the first two years as the company will be making a loss. Return
on investments will only be seen in the third year of operation.
2.0 Introduction
Company Background
The Easy UC Way Seminars was founded by Dr. Muruga in 2002. The Easy UC Way is a
training provider for soft skill personal development seminars. When The Easy UC Way Seminars
first started operations in 2002 it only organized one particular seminar which had the same titles
as the company name The Easy UC Way. This one seminar was The Easy UC Way Seminars
sole revenue generator. However over the years The Easy UC Way Seminar has introduced new
seminar such as Emotional Selling, Changing Behaviour at Work, The Easy UC Way for Teens,
Millionaire Entrepreneur and The 5 Year Dream Achievement Program.
Dr. Muruga who is the founder and the trainer for The Easy UC Way Seminars plays a
big role in The Easy UC Way. He is the author of a Malaysian bestseller book entitled, The Easy
UC Way. Dr. Muruga is responsible for creating new programs and also for improving on present
seminars.
Currently The Easy UC Way organizes an average of six seminars a year. It takes 2
month to prepare for one seminar. The Easy UC Way is now also entering the corporate sector by
organizing in-house seminars for organizations like Maybank, RHB, MCIS Zurich, UNESCO and
PETRONAS.
background. The market can also be segmented by geographic, demographic and behavioural. At
last there are also low barriers to entry which means that EZUC would not face much difficulty in
penetrating the Indian market.
4.2 Weaknesses
Knowledge of Competitors in foreign Market
Due to lack of popularity in the training industry, there is a lack of knowledge on the business
environment and competitors in Tamil Nadu.
Limited trainers
Currently The Easy UC Way has only 1 full time dedicated trainer Dr. Muruga. The lack of
trainers is a lack of resources for the company.
4.3 Opportunities
Growing GDP, population, and market size
India has been dubbed the new power house of Asia. There has been a growth in its economy
and it has become a very attractive nation to expand to. These growths potentially increase the
size of EZUCs target market size.
Growing professional labour force and growing of interest in new age training
There is a growing interest in new age training. More working people are now seeking ways to
change their life for the better and to work more effectively and efficiently especially the middle
to higher income earners.
Industrial expansion and the larger Indian market
Another reason these seminars will be exported to India is because the Indian market is bigger
than the Malaysian market. Even a small market share would represent a huge sales volume. As a
result of the industrial expansion in Tamil Nadu, more firms have been mushrooming and needed
training.
Opportunity to collaborate with local training providers
EZUC currently has contacts with the local training providers in India and this presents an
amazing opportunity for EZUC to work together with them in order to tap into this vast market.
These training providers are part of an extensive market and thus present EZUC with the market
presence that it needs to be effective in a new market.
4.4 Threats
Saturated market leading to increase in barriers to entry
Indias new status as the new economic powerhouse in Asia has resulted in the nation being a
popular choice for foreign firms to enter. Its new popularity is also a reason our company has
chosen Tamil Nadu as our foreign market of choice. However the flooding of foreign firms into
India will make it a much more competitive market. This may lead to potentially saturated market
and might prove to increase the barriers to entry into India.
Existing Competitors in Tamil Nadu
The existence of international training providers in India might prove to be more competition that
The EZUC can handle. Intense competition with these firms may prove to be very costly and
there lies a risk of EZUC being unprofitable in this market.
Lack of Response
Due to the nature of the seminar organized by this company there is no guarantee of whether the
Indian market will take to the concepts preached in a positive manner. There is a potential of
resistance to what the seminar preaches and this would simply mean that the company would fail
or otherwise have to modify its seminars to suit the Tamil Nadu market.
have limited lifespan unless the both parties can develop an agreed corporate mission and agree
on a common strategy and mode of governance1.
Limitation of control may be another setback of joint venturing. EZUC might not have as
much control or be in command of the newly developed programs and seminars. For example,
EZUC may not have the power and the rights on deciding the message content and the content of
the programs being promoted.
5.1.2 Licensing
Licensing is simply the right to produce its product, use its production processes, or use
its brand name or trademark to another firm (the licensee). In return for giving the licensee these
rights, the licensor collects a royalty fee on every unit the licensee sells 2. This market entry option
can be put into action by licensing a successful training provider in India to sell the service
offered by EZUC. This training provider is expected to have the expertise in dealing in the local
market and understanding of the local business culture.
Advantages
The main advantage of this market entry option is that it gives an opportunity to EZUC to
test the market before diving into it. This can be beneficial if any uncertainties or doubts were to
occur in entering the market directly. Licensing also allow EZUC to enter new markets without
the expense of starting independent production. Providing licensing to a company overseas allows
the The Easy UC Way Seminars to enter the market without payment of customs duties, and
licensors may benefit from lower set up costs.
Disadvantages
The main disadvantage of entering the market via a licensee is that there are limited
returns garnered by EZUC. If the licensee fails to market the service successfully, this would
mean that the returns would be much lower than expected. Licensing a service to a company in
India may also lead to the cloning of the service offered by EZUC.
Another disadvantage of entering the market via a licensee is that the licensee may not
fully develop the potential of The EZUC. This can lead to serious damage to the image of the
service permanently if EZUC plans to enter the market after the agreement with the licensee
expires.
1
Fletcher, R., Brown, L. (2002). International Marketing: An Asia-Pacific Perspective 2nd edition. Prentice
Hall Australia.pp234
10
11
Option 1:
Option 2:
Option 3:
market
Gender
Age
Region
Tamil Nadu
Tamil Nadu
Tamil Nadu
Education
post-graduates,
post-graduates,
professionals
professionals
Occupation
Lifestyle
Working Professionals
Business Owners
College Students
management,
working environment
health conscious
entrepreneurship and
health conscious
Income
Social class
Rely or depends on
parents
upper class
middle class
Title
Place
12
transportation.
- Offer one month early bird discount
Price
Title
Place
Promotion
Price
transportation.
- Offer early bird discount
Moderate to premium price cater for middle to higher income brackets
The Easy UC Way for Grads Seminar - prepare college students for the
Title
Place
Promotion
Price
13
High Price
High Price
High
Quality
High
Quality
Low
Quality
Low Price
Table 7A: Option
1&2 position
Low
Quality
Low Price
Table 7B: Option 3
position
14
6.0 Objectives
6.1 Organisation Mission and Corporate Strategy
6.1.1 Mission Statement
EZUC aims to provide individuals with knowledge on how they can improve themselves
in all areas of their life in the most comfortable and conducive environment specially created by
EZUC.
Personnel
Finance
Operations
Marketing
Customer
EZUC uses the customer as the controlling function and marketing as the integrative function in
its strategy to approach the Tamil Nadu market. EZUCs corporate strategy is constantly be in
touch with the customers preferences and to modify their marketing activities to suit their
customers preferences.
15
3. Additions of new products and services that can help individuals improve themselves in
all areas of their life.
16
17
profit and losses would be shared equally among the two companies. EZUC would bear the cost
of seminar materials such as trainer fees and training equipments where else the joint venture
company in India would bear all marketing cost such as advertising and promotion expenses as
well other expenses. Other expenses can include from the cost of renting a venue to the research
cost of find the demand for the seminar and how to attract the target market for the seminars. The
ultimate profit results from each seminar would then be equally divided between the two
companies.
The main justification of using joint venture as an entry mode lies on the reduction of the
uncertainty that EZUC would have face when entering Indian market. Capital cost will be greatly
reduced and so are the other recourse commitments. It would also enable the access to contacts
and expertise in penetration of the local market. By having a joint venture partner would also
eliminate the trouble of doing research as joint venture partners would have their own network
and set of connections that could smoothen an facilitate EZUC process to set up seminars in
India. On top of that, having a systematic and well arranged network can help speed up new
programs or seminars to be introduced. Both companies may also share views on customizing a
new program to meet the Indian market and also form the ability to bring together complementary
skills and assets that neither company could easily develop on its own. This enables EZUC with
its joint venture partner to combine resources, knowledge, skills, seminar materials and
technology to design new seminars and programs to suit new target market and restructure old
ones.
18
Core
Persona
l
Development
Actual
Seminar Content
Trainer
Seminar Material
The Easy UC Way
Brand
Presentation Style
Augmented
90 Day Money Back
Guarantee
Free Post-Counseling
19
existent in this stage because of the heavy expenses of product introduction. Estimation shows
that The Easy UC Way Seminars will be at the introduction stage for the first two years. In year 1,
it will make a total loss of RM 82,692.00 while in year 2 it will make a total loss of RM
18,819.00. Sales will start to grow as The EZUC enters the growth stage in year 3.
Expenses on promotion will be very high in the first two years of the introduction stage
as the company will need to raise awareness about the seminar. A budget of RM 120,000 has been
allocated for the first two years. The same budget has been allocated for the third year so as to
maintain high awareness levels. The focus is on selling to the high income groups because the
price of the seminar will be very high at the introduction stage.
Sales
Year 3 onwards
Year 1 & 2
Time
Introduction
Growth
Maturity
Decline
20
Amount (RM)
120,000.00
36,000.00
27,000.00
4,800.00
1,800.00
18,000.00
207,600.00
Amount (RP)
1,424,645.16
427,393.55
320,545.16
56,985.81
21,369.68
213,696.77
2,464,636.13
Variable Cost
Amount (RM)
Venue
200.00
Seminar Material
100.00
TOTAL
300.00
* Conversion rate: RM1.0000 = Rp11.8720
Amount (RP)
2,374.41
1,187.20
3,561.61
RM
992 / (1-0.15)
1167.05
1,170.82
RP
11,777.06 / (1-0.15)
13,855.36
13,900.00
21
firms providing more quality supports the high price. This strategy will mean lower sales volume
but at a higher selling price will mean EZUC makes a higher profit margin.
Psychological Pricing
Customers have a perception that high prices represent high quality. By practicing high
prices for the seminar EZUC creates a perception that The Easy UC Way Seminar is high in
quality. This is in tandem with EZUC positioning strategy of high price and high quality. Also, by
pricing the seminar at Rp.13,900 it creates an illusion that the seminar is in the RP 13,000 price
range. While the economic difference might only be RP 100 the psychological difference is much
larger.
Discount Pricing
Cash Discounts
In the training industry cash discounts are popularly referred to as early bird discounts.
Early bird discounts are discounts which are given to participants who register and pay for a
seminar before the seminar date.
Discount
Total Sale from Discount
Year 1
RP 7,000
30%
Year 2
RP 5,000
20%
Year 3
RP 5,000
20%
Quantity Discounts
Quantity discounts are commonly known as group discounts in the training industry.
Group discounts will be given to groups of 4 and more who register for the seminar. Group
discounts only apply after the early bird discount has ended. For groups of four and above each
individual gets RP 2000.00 (RM 168.46) of the original price.
7.4.3 Promotion
EZUC will adopt a pull strategy that will focus mainly on advertising, sales promotions
and public relations activities. The easy UC Way Seminar is a consumer product which is at its
introduction stage in its product life cycle in Tamil Nadu. In the introduction stage advertising
and public relations activities have to be conducted to produce high awareness levels of the
seminar. Sales promotions have to be conducted to promote early trial of the product. Buyer
readiness stage also has to be taken into account. EZUCs target market is still at it knowledge
and awareness stage. Thus, a lot of advertising and public relations activity have to be conducted
create awareness and educated EZUCs target market.
The Promotional Mix
22
Advertising
Advertising will be EZUCs main thrust in raising awareness of its seminar. Advertising
will have three objectives which are to raise awareness, educate the target market and increase the
sales volume
To raise awareness there has to be high frequency in advertising. Newspaper advertising
is more affordable than television advertising. Thus, there can be a higher frequency of
newspaper advertising. Studies show that large scale high frequency advertising creates the
perception of popularity and success. Potential customers start to remember these companies.
The advertisement has to educate the target market on what The Easy UC Way Seminar
really is. The message content has to include seminar benefits and modules covered by the
seminar. The target market has to know the seminar USP and why it is different from other
seminars. To increase sales volume, the advertisement has to highlight sales promotion activities
which will be discussed later. Below is a sample advertisement used in Malaysia which fulfils the
three objectives:
The advertisement was placed six times before the
seminar. It includes an announcement on early bird
discounts and a paragraph on how the seminar can
benefit participants.
The advertisement in Tamil Nadus newspaper has to
be similar with the sample advertisement above.
There will be 6 seminars organized in a year. For
each seminar 8 advertisements should be placed 2
months before the seminar date. That would mean a
total of 48 advertisements will be placed in a year.
Sales Promotion
Sales promotion will help in generating quick sales
in the introduction stage of the product. It will generate much needed revenue in the early stage of
the products life to help sustain the business. There are two sales promotional tools that can be
used.
Free Autographed Book for First 10 Registrants
Since Dr. Muruga has a book that he has published, one sales promotional tool will be for every
first 10 individuals who register for the seminar they will receive one free Easy UC Way book.
23
24
3. Public Relations
a. Newspaper Articles
b. Magazine Articles
c. Free talks at charitable organizations
4. Personal Selling
The following table shows how the promotional budget was fixed.
Task
Newspaper Ads
Free Books
Free Email Consultation
Free Preview Sessions
Public Relations- Articles
Public Relations Free Talk
Personal Selling
TOTAL
Frequency
48
60
6
8
1 employee
Total Cost
RM 96,000
RM 600
RM 1,800
RM 8,000
RM 12000
RM 118,400
7.4.4 Place
Because The Easy UC Way is a service product and is being introduced to the Tamil
Nadu market through a joint venture agreement there are no distribution channel issues and
physical distribution issues. There are no middlemen in the relationship between the company and
its customers. It is a direct relationship between the two. However, a large part of the service is
the convenience of the seminar location. Because this is a service product a lot of emphasize has
to be placed on the convenience and quality of the location. The location of the seminar has to be
at 4 or 5 star hotel with adequate function and meeting facilities. The venue has to be accessible
by public transport and must not be too distant from the city centre. These hotels have to offer
corporate rates to help reduce the cost of organizing a seminar.
Below are a few hotels that meet these requirements.
1. Chola Sheraton
2. The Park Sheraton Hotel & Towers
3. The Trident
4. Taj Coromandel
5. Connamera Hotel
7.4.5 People
In the training industry the people delivering the service are an important ingredient in
creating an image and the level of presentation and product knowledge need to be appropriate to
25
the service being offered. Since EZUC is entering the Tamil Nadu market through a joint venture,
EZUCs partners in Tamil Nadu will have to be trained with product knowledge. To educate
partners with product knowledge a special sessions will be held to educate EZUCs Tamil Nadu
partners on product knowledge. To reduce cost, these sessions will coincide with the trainers
visit to India for training purposes. Further training will be conducted via e-mails through
monthly tutorials specially designed by Dr. Muruga.
7.4.6 Process
In the service industry how you run your services is extremely important. EZUC is a high
end product, targeting high end users. These particular target markets are pampered and demand
certain levels of service. Registration for seminars plays a big role in the processes of EZUC.
EZUC has to make the registration process as simple and painless as possible. Customers must be
able to register via fax, telephone, email and through EZUCs website. A minimum amount of
personal details should be required. Participants should be able to make payment through cash,
cheques, credit cards, charge cards, debit cards and online banking. To engage customers after the
registration process, automated email messages must be used to send these registrants messages
regarding the seminar they have just invested in. Registration is the biggest part of processes. It
contributes to the image building of EZUC and the perception that customers have about EZUC.
26
market shares, prices, revenues, costs and other variables that may have a significant impact on
EZUC.
First of all the population of Tamil Nadu is around 62 million of which 44 % are working
people3. As the target market for EZUC consists of working people, the assumption made behind
market size would be around 44%. Out of this 44% it is also estimated that the market share of
EZUC would be 20% of the working class people. Another assumption is for price. As most of
the revenues and cost would be ultimately converted to Malaysian Ringgit (RM), it is therefore
important that a fixed exchange rate is use between Malaysian Ringgit and Indian Rupee (Rp.).
The exchange rate is RM 1= Rp. 11.8720 based on the current exchange rate. It is also known that
the average Indian seminar providers charges on average about Rp. 10,000 and for EZUC it
would be Rp. 13,900.
For the purpose of the project it is also assumed that financing would be done within the
company by Dr. Muruga and his joint venture partners. This would mean that there would not be
any loan taken from the banks and therefore interest expense is irrelevant in this situation. For
revenue it is estimated that the initial period would see low cash flows but later revenue should
rise. For the 1st year it is also assumed that there would be a sale of 180 where each seminar
should average about 30 people. For cost it is assumed that the expenses should be same as in
Malaysia. Besides all these it is also assumed that the Indian economy should grow constantly
which would be resulted from more people working which means increase in the target market
and lastly it is also assumed that the political and legal conditions should stay stable or at least not
experience big changes in the political and legal environment.
27
8.2 & 8.3 Forecast Sales, Market Share, Costs and Profit
Profit and Loss Statement and Break Even Analysis
EZUC Way
Profit and Loss Statement for the first Three Years of Operations
(Most Likely Scenario)
Items
Year 1
Year 2
RM
Year 3
Revenues:
Sales of Seminar ( ____ pax * RM1170.82 )
Total Revenue
210,748
210,748
280,997
280,997
351,246
351,246
Expenses:
Marketing Cost ( 6 seminars * RM 20000 )
Trainer's Fee ( 6 seminars * RM 6000 )
Travel Cost ( 6 seminars * RM 4500 )
Trainer's Lodging ( 6 seminars * RM 800 )
Trainer's Allowance ( 6 seminars * RM 300 )
Operations Expense ( 6 seminars * RM 3000 )
Discount incurred
Venue
Seminar Material
Total Expenses
120,000
36,000
27,000
4,800
1,800
18,000
31,840
36,000
18,000
293,440
120,000
36,000
27,000
4,800
1,800
18,000
20,216
48,000
24,000
299,816
120,000
36,000
27,000
4,800
1,800
18,000
25,269
60,000
30,000
322,869
-82,692
0
-18,819
0
28,377
9,932
238.396
As such, EZUC is only able to break even after its 238 th participant. It will be making a profit
from then on. It is estimated that EZUC will break even in the 2 nd year of operations.
EZUC Way
Profit and Loss Statement for the first Three Years of Operations
(Worst Case Scenario)
Items
Year 1
Year 2
RM
Year 3
Revenues:
Sales of Seminar ( ____ pax * RM1170.82 )
Total Revenue
70,249
70,249
140,498
140,498
210,748
210,748
Expenses:
Marketing Cost ( 6 seminars * RM 20000 )
Trainer's Fee ( 6 seminars * RM 6000 )
Travel Cost ( 6 seminars * RM 4500 )
Trainer's Lodging ( 6 seminars * RM 800 )
Trainer's Allowance ( 6 seminars * RM 300 )
Operations Expense ( 6 seminars * RM 3000 )
Discount incurred
Venue
Seminar Material
Total Expenses
120,000
36,000
27,000
4,800
1,800
18,000
10,613
12,000
6,000
236,213
120,000
36,000
27,000
4,800
1,800
18,000
10,108
24,000
12,000
253,708
120,000
36,000
27,000
4,800
1,800
18,000
15,162
36,000
18,000
276,762
-165,964
0
-113,210
0
-66,014
0
EZUC Way
29
Profit and Loss Statement for the first Three Years of Operations
(Best Case Scenario)
Items
Year 1
Year 2
RM
Year 3
Revenues:
Sales of Seminar ( ____ pax * RM1170.82 )
Total Revenue
491,744
491,744
561,994
561,994
632,243
632,243
Expenses:
Marketing Cost ( 6 seminars * RM 20000 )
Trainer's Fee ( 6 seminars * RM 6000 )
Travel Cost ( 6 seminars * RM 4500 )
Trainer's Lodging ( 6 seminars * RM 800 )
Trainer's Allowance ( 6 seminars * RM 300 )
Operations Expense ( 6 seminars * RM 3000 )
Discount incurred
Venue
Seminar Material
Total Expenses
120,000
36,000
27,000
4,800
1,800
18,000
74,292
84,000
42,000
407,892
120,000
36,000
27,000
4,800
1,800
18,000
40,432
96,000
48,000
392,032
120,000
36,000
27,000
4,800
1,800
18,000
45,485
108,000
54,000
415,085
83,852
29,348
169,962
59,487
217,158
76,005
54,504
110,475
141,153
Under the Best Case Scenario, for the first year of operations, we expect to have a total of
70 participants for each seminar which would equate to 420 participants in total. This figure is
expected to increase to 480 in Year 2 and 540 in Year 3. This is based on our calculations that we
are expecting the number of participants in each seminar to increase by 10 in the second year and
another 10 in year 3.
Some of the assumptions that need to be taken into consideration when analysing the Profit &
Loss Statements above are as follows:
1) Sales of seminars increase by 10 pax/seminar per year
2) Discount incurred is equals to Rp 7000 in the first year and Rp 5000 in year 2 and 3
3) Discount given to 30% of participants in the first year
4) Discount given to 20% of participants in the second and third year
5) Expenses for Venue is RM 200 * Number of participants
6) Expenses for Seminar Material is RM 100 * Number of participants
7) We expect to conduct a total of 6 seminars in each year
8) Return on Investment (ROI) is calculated as Net Income divided by Book value of assets. As
EZUC has no assets, ROI could not be calculated.
Activity
Responsible
Start Date
Completion
Date
Research
-
Business/Company
Analysis
Situational Analysis
Service Analysis
Marketing Strategy
Economic Evaluation
Goal Setting
Budget Analysis
1/02/06
01/02/06
Other Factors
Selecting a Partner
C.E.O
11/06/06
30/06/06
Setting up a website
01/07/06
14/07/06
13/07/06
13/07/07
Principal Consultant
14/08/06
14/08/06
30/08/06
30/08/06
30/08/04
01/09/04
Promotion
First Seminar
Reporting sales performance
- Monthly report
Salary payment
-
31
the actual result to see whether the implementation meet the objectives of the company. To be
successful it is important to evaluate the results of marketing strategy that is used and find the
causes of differences between the expected and actual performance level.
The company will need to meticulously monitor the action plan so that all the progress of
the implementations can be evaluated successfully. This ongoing monitoring process is to ensure
that the gap between expected and actual performance can be minimize by formulating corrective
measures. Types of monitoring action plan can be listed as below.
-
Conducting a survey on the public to find out the level of brand awareness
towards EZUC and analyzing feedbacks received from customers. This is to
better understand the consumers needs and wants and will allow the company
to cope with the current market demand and seek new profit opportunities by
bringing in new service range in the future. Thus, EZUC will be able to
maximize customer satisfaction and enhance brand loyalty.
Conduct a research on sales and demand by area. This is to find out which area
in Tamil Nadu has more demand for personal development seminars so that
marketing strategy can be increased on that area. By doing so, EZUC can also
determine which area demands which kind of services more, so that a suitable
type of seminar can be tailored and a more effective promotional strategy can
be implemented.
Make measurement of the potential sales and profit which can be achieved by
establishing own subsidiary instead of having a joint partnership. This allows
EZUC to decide the right time to set up their fully owned subsidiary in Tamil
Nadu.
32
EZUC will be more prepared when such things do arise. Action plans on how to respond to these
events are needed as a preparation for not only the worst but also the best scenarios. The possible
case and solution are listed below.
9.3.1 Product/Marketing
Scenario 1 Unsatisfactory Performance by the Partner
A termination of the contract in the event that a partner not being able to fulfill or live-up
to the agreed agreements. To make this possible, EZUC should include in the contract that the
company can choose to terminate the contract at anytime if the partner fails to adhere to EZUCs
standards and requirements. However, it is important for EZUC to find a dependable agent as
terminating a contract involves a great hassle.
Scenario 2 Lack of Competitive Advantage and service not in demand
The EZUC service range may not meet the Tamil Nadu market needs and wants due to
factors like strong competitions or brand unawareness or economic limitations of customers and
thus causing inadequate sales performance. Depending on the severity, EZUC may want to
consider relocating their operation to other countries which have high demand for personal
development seminars. A low price selling could possibly solve this problem in the short run but
at large it may create problems with the company reputations and reduce profit margin. Another
possible solution is to change the range of seminars to others that are more demanded by the
market and perhaps add more value to the seminars by providing benefits to the customers in the
form of a nationally credited cert. For this, EZUC may need to approach the government for
support and assistance.
9.3.2 Economical
Scenario 3 Currency Fluctuation & Recession
International business would inevitably involve economic and foreign currency
conversion risks as witnessed in the 1997 economic crisis, whereby countries in South East Asia
suffered large currency fluctuations.4 If such scenario happens in India, EZUC will face a
significantly big problem. To minimize the effect of such economic downturn, EZUC must decide
on its pricing strategy among other things. If price is maintained, it would probably reduce the
chances of losing customers but at the same time the revenue earned will be less due to the
depreciating currency. Reducing the price may enhance the competitive position of EZUC in the
market but will greater reduce the revenue earned per customer; however this is acceptable if it
4
Fletcher, R., Brown, L. (2002). International Marketing: An Asia-Pacific Perspective 2nd edition. Prentice
Hall Australia. Chapter 2 pp48-49
33
increases the volume of customers. Increasing the price is also an option, but it is more risky
unless EZUC is able to clearly state obvious added value and features of their seminars. All three
strategies should lower the chances of EZUC closing its Tamil Nadu branch. To further ensure
the success, EZUC need to find ways to remain competitive in the market. 5
9.3.3 Political
Scenario 4 Changes of Government Regulation
Over time, the Indian Government like many other countries may change their policies,
rules and regulations as leaders and ruling party change. If the changes in policies, rules and
regulations are drastic, it will most likely cause problems to EZUC. Thus, the company will need
to change its marketing strategy. For example, if there is a change in tax; the company will have
to make its price changes accordingly. If a suitable solution cannot be undertaken, a Pull out is
suggested a last choice.6
Bibliography
Books:
Kotler, P., Adam, S., Brown, L., Armstrong, G. 2003, Principles of Marketing, 2nd
Edition, Prentice Hall, Australia.
5
Fletcher, R., Brown, L. (2002). International Marketing: An Asia-Pacific Perspective 2nd edition. Prentice
Hall Australia. Chapter 2 pp48-49
6
Fletcher, R., Brown, L. (2002). International Marketing: An Asia-Pacific Perspective 2nd edition. Prentice
Hall Australia. Chapter 4 pp123-125
34
Singh, J. (2001). India: Business Opportunities, Arthur Andersen India Pvt Ltd.
KPMG India (2003). India 2003-04: Reliable Business Partner Attractive FDI
Destination, Investment &Technology Promotion Division Ministry of External Affairs,
Government of India.
Websites:
Tamil Nadu Industrial Development Corporation Ltd.: Formation of Companies, 2004
Available:
http://www.tidco.com/india_policies/company_formation/formation_of_companies.asp
35
Appendices
Appendix A Tamil Nadu - Total
36
Parameter
Population
Total
Male
Female
Population (0-6)
100
987
7235160
3725616
3509544
13.11
942
Scheduled Castes
11857504
5932925
5924579
21.49
999
Scheduled Tribes
651321
328917
322404
1.18
980
Literates
73.45
777
Illiterates
21881134
26.55
1547
8591247 13289887
Workers
27878282 18100397
9777885
44.67
540
Main Workers
23757783 16303310
7454473
38.07
457
Main Cultivators
4738819
3107543
1631276
19.95
525
Main Agricultural
labourers
6062786
3273642
2789144
25.52
852
Main Workers in
household industries
1261059
594025
667034
5.31
1123
11695119
9328100
2367019
49.23
254
4120499
1797087
2323412
15
1293
377220
154946
222274
9.15
1435
Marginal Agricultural
labourers
2574844
982718
1592126
62.49
1620
Marginal Workers in
Household industries
238702
54564
184138
5.79
3375
Marginal Other
Workers
929733
604859
324874
22.56
537
55.33
1596
Marginal Workers
Marginal Cultivators
Non Workers
Households
14665983
Source: Directorate of Census Operations - Tamil Nadu: Primary Census Abstract - Census 2001,
2001. Available: http://www.census.tn.nic.in/pca2001.aspx
130058
Population
62405679
Male Population
31400909
Female Population
31004770
Rural Population
34921681
Urban Population
27483998
480
Literates
40524545
Workers
37
Total Workers
27878282
Male
18100397
Female
9777885
Rural
17559768
Urban
10318514
Main Workers
23757783
Marginal Workers
4120499
Categories of Workers
Cultivators
5116039
Agricultural Labourers
8637630
Household Industry
1499761
Other Workers
12624852
Non-Workers
34527397
14965415
8557266
23476
At Constant Price
13423
Tamil
Nadu
India
1.
130
3287
2.
62.4
1029
Rural
34.9
742.7
Urban
27.5
286.1
2006
65.0
1094.1
2011
67.6
1178.9
2016
69.9
1263.5
Projected
3.
480
325
4.
987
933
38
27.78
6.
16.2
7.
8.2
8.
18.5
25.0
9.
7.7
8.1
44
64
73.5
64.8
Male
82.4
75.3
Female
64.4
53.7
65
60
Urban
84
81
12.
1517
40279
13.
3577
72653
14.
33.5
18.0
485.3
36.5
347.6
4988
84754
422.4
3906.9
20601
128549
17.
20.
419.5
3442
21.
203
3108
22.
4925.5
41995.9
23.
Percapita Consumption of
Electricity (KWH.) 2002-03
815
567
100
83.80
39
1676
13792
175
172
5658097 58863027
4757
66970
98873
1517200
88622
890866
89.6
58.72
261
1415.18 6833.38
1929
100.00
21318
306943
26862
355166
8870
118812
3327
75768
80245
1308010
30.
31.
41.3
32.
1.3
1.3
33.
3093
55780
34.
93.6
78.2
35.
93.6
90.1
40
41
Area
(Sq.km)
Population
Total
Total
Male
Rural
Female
Total
Male
Urban
Female
Total
Male
Female
Tamil Nadu
130058 62405679 31400909 31004770 34921681 17531494 17390187 27483998 13869415 13614583
Chennai
174
Kancheepuram
4433
Tiruvallur
--
666407
1534966 781147
753919
3424
625622
1500082 768355
731727
Cuddalore
3678
759248
754361
379122
375239
Villupuram
7217
215027
211890
Vellore
6077
655005
Tiruvannamalai
6191
889626
400761
200121
200640
Salem
5220
773709
1390184 711180
679004
Namakkal
3429
1493462 759551
465865
545232
277186
268046
Dharmapuri
9622
233475
222471
Erode
8209
682101
1193963 603842
590121
Coimbatore
7469
716954
The Nilgiris
2549
762141
151874
155658
454609
226477
228132
Tiruchirapalli
11096
640587
1139162 569917
569245
Karur
935686
465538
470148
624430
310922
313508
311256
154616
156640
Perambalur
493646
24614
247505
414426
206807
207619
79220
39334
39886
Ariyalur
695524
346763
348761
616539
307670
308869
78985
39093
39892
378351
733911
383790
948230
307532
--
482365
42
Thanjavur
3397
741084
748561
370145
378416
Nagapattinam
2716
1488839 739074
749765
1158557 576010
582547
330282
163064
167218
Tiruvarur
2161
1169474 580784
588690
932231
463502
468729
237243
117282
119961
Pudukkottai
4651
1459601 724300
735301
1211217 600511
610706
248384
123789
124595
Madurai
6565
560989
1444176 730327
713849
1093950 552986
540960
502109
255152
246957
591841
297834
294007
6058
1923014 968137
954877
1249762 629073
620689
673252
339064
334188
Ramanathapuram 4232
1187604 583376
604228
885210
433290
451920
302394
150086
152308
Virudhunagar
4288
1751301 870376
880925
973956
482626
491330
777345
387750
389595
Sivagangai
4086
1155356 566947
588409
829272
405093
427179
326084
161854
164230
Tirunelveli
6810
726945
1308246 645142
663104
Thoothukudi
4621
1572273 766823
805450
907500
439254
468246
664773
327569
337204
Kanniyakumari
1685
1676034 832269
843765
582107
289516
292591
1093927 542753
551174
Theni
Dindigul
(2001 Census)
Literates
State/District
Total
Total
Male
Rural
Female
Total
Male
Urban
Female
Total
Male
Female
Tamil Nadu
40524545
22809662
17714883
20319498
11835689
8483809
20205047
10973973
9231074
Chennai
3336695
1799981
1536714
--
--
--
3336695
1799981
1536714
Kancheepuram
1952198
1088943
863255
791700
457846
333854
1160498
631097
529401
Tiruvallur
1865707
1047763
817944
736374
427393
308981
1129333
620370
508963
43
Cuddalore
1420488
820726
599762
872343
521901
350442
548145
298825
249320
Villupuram
1650528
977374
673154
1347727
809944
537783
302801
167430
135371
Vellore
2203552
1245076
958476
1276373
741671
534702
927179
503405
423774
Tiruvannamalai
1297151
761403
535748
1014930
605600
409330
282221
155803
126418
Salem
1734442
1021772
712670
819312
506149
313163
915130
515623
399507
Namakkal
903802
526412
377390
538212
320242
217970
365590
206170
159420
Dharmapuri
1516221
906943
609278
1204910
733162
471748
311311
173781
137530
Erode
1521955
887907
634048
726792
440042
286750
795163
447865
347298
Coimbatore
2945278
1648814
1296464
847250
493911
353339
2098028
1154903
943125
The Nilgiris
541099
296573
244526
202668
113834
88834
338431
182739
155692
Tiruchirapalli
1673478
926354
747124
787843
455246
332597
885635
471108
414527
Karur
566728
328103
238625
345850
206907
138943
220878
121196
99682
Perambalur
286197
167406
118791
230818
137385
93433
55379
30021
25358
Ariyalur
388605
232385
156220
334760
202879
131881
53845
29506
24339
Thanjavur
1476256
814354
661902
912445
515621
396824
563811
298733
265078
Nagapattinam
996580
548142
448438
751618
418324
333294
244962
129818
115144
Tiruvarur
788302
435421
352881
608297
340202
268095
180005
95219
84786
Pudukkottai
907376
520281
387095
719477
419697
299780
187899
100584
87315
Madurai
1776654
991010
785644
673502
397156
576346
1103152
593854
509298
Theni
692797
398150
294647
2932508
174522
118686
399589
223628
175961
Dindigul
1181746
681698
500048
710461
421948
288513
710461
421948
288513
Ramanathapuram
757344
421041
336303
534155
302194
231961
223189
118847
104342
Virudhunagar
1136574
641062
495512
586525
339594
246931
550049
301468
248581
44
Sivagangai
738000
414755
323245
491768
283769
207999
246232
130986
115246
Tirunelveli
1829064
997278
831786
891282
490721
400561
937782
506557
431225
Thoothukudi
1131406
593868
537538
622745
329518
293227
508661
264350
244311
Kanniyakumari
1308322
668667
639655
446153
228311
217842
862169
440356
421813
Source: Government of Tamil Nadu-Department of Economics and Statistics: Area, Population, Literates, Scheduled Castes and Scheduled Tribes by
Districts, Census of India 2001. Available: http://www.tn.gov.in/deptst/tab01_01.htm
45
480
73.5
44.78
19.00
1.04
987
7.
39.47
8.
23.35
18.5
7.7
44
23476
14965415
F EMPLOYMENT 2004
Average daily employment in registered working factories per lakh of
population (Based on 2001 Census Population)
1844
H EDUCATION 2003-04
1. Average number of students per Institution
a. Primary stage
133
b. Middle stage
327
392
1096
2. Teacher-Pupil ratio
a. Primary Schools
35
b. Middle Schools
37
c. High Schools
28
32
11
Boys
12.20
34.30
57.24
77.20
Girls
15.50
29.99
57.71
74.22
Total
13.85
32.10
57.37
75.81
105
27
3.
1082
J COMMUNICATION 2003
Population served per Post and Telegraph Office(Based on 2001 Population) 5116
K SMALL SAVINGS 2003
L TENTH FIVE YEAR PLAN : Annual Plan 2002-03
Percentage of Annual Plan Expenditure to total outlay :a. Agriculture and Allied Services
4.50
4.22
26.79
8.76
38.82
f. Others
16.91
Source: Government of Tamil Nadu-Department of Economics and Statistics: State Income, 2001.
Available: http://www.tn.gov.in/deptst/Ecoindicator.htm
Rank
Country
Population
Date of
Information
1 World
6,446,131,400
July 2005
est.
2 China
1,306,313,812
July 2005
est.
3 India
1,080,264,388
July 2005
est.
47
4 European Union
456,953,258
July 2005
est.
5 United States
295,734,134
July 2005
est.
6 Indonesia
241,973,879
July 2005
est.
7 Brazil
186,112,794
July 2005
est.
8 Pakistan
162,419,946
July 2005
est.
9 Bangladesh
144,319,628
July 2005
est.
143,420,309
July 2005
est.
10 Russia
48
District
Total
population
Total
workers
Percentage of Total
Workers to Total Population
2001
1991
Variation
Thiruvallur
2,738,866
1,025,961
37.46
37.19
0.27
Chennai
4,216,268
1,441,382
34.19
30.54
3.65
Kancheepuram
2,869,920
1,142,662
39.82
38.88
0.94
Vellore
3,482,970
1,427,003
40.97
40.42
0.55
Dharmapuri
2,833,252
1,419,617
50.11
47.60
2.51
Tiruvannamalai
2,181,853
1,062,317
48.69
45.64
3.05
Viluppuram
2,943,917
1,436,373
48.79
45.36
3.43
Salem
2,992,754
1,452,366
48.53
47.31
1.22
Namakkal
1,495,661
841,816
56.28
53.02
3.26
Erode
2,574,067
1,431,276
55.60
52.30
3.30
The Nilgiris
764,826
346,669
45.33
40.67
4.66
Coimbatore
4,224,107
1,969,332
46.62
45.13
1.49
Dindigul
1,918,960
972,775
50.69
49.12
1.57
933,791
495,737
53.09
51.52
1.57
2,388,831
1,055,580
44.19
41.20
2.99
Perambalur
486,971
267,042
54.84
54.25
0.59
Ariyalur
694,058
345,132
49.73
51.87
-2.14
Cuddalore
2,280,530
974,966
42.75
41.49
1.26
Nagapattinam
1,487,055
584,310
39.29
40.46
-1.17
Thiruvarur
1,165,213
489,904
42.04
42.19
-0.15
Thanjavur
2,205,375
910,414
41.28
39.79
1.49
Pudukkottai
1,452,269
677,314
46.64
44.25
2.39
Sivaganga
1,150,753
509,493
44.27
46.24
-1.97
Madurai
2,562,279
1,081,686
42.22
42.12
0.10
Theni
1,094,724
519,449
47.45
48.28
-0.83
Virudhunagar
1,751,548
880,579
50.27
50.08
0.19
Ramanathapuram
1,183,321
520,623
44.00
45.28
-1.28
Karur
Tiruchirappalli
49
Thoothukkudi
1,565,743
673,682
43.03
41.59
1.44
Tirunelveli
2,801,194
1,310,582
46.79
47.18
-0.39
Kanniyakumari
1,669,763
545,605
32.68
30.50
2.18
62,110,839 27,811,647
44.78
43.31
1.47
TAMILNADU
50
51
52
Millionaire Entrepreneur
Changing Behavior
5 Year Dream Achievement Program
The EZUC Way for Teens
The Easy UC Way Success Without Effort and Discipline
The reason these seminars will be exported to India is because the Indian market
is bigger than the Malaysian market. Even a small market share would represent
a huge sales volume.
The Indian market has also received a lot of positive reviews from the global
economy. Many anticipate India to be one of the worlds most powerful
economies.
The Easy UC Way Seminars is based on its founder Dr. Muruga. Dr. Muruga is
a Malaysian. The Indian market has always perceived Malaysia and Singapore
as nations to follow. The fact that Dr. Muruga is a Malaysian will improve sales in
India.
When choosing a country to export to we had a choice of the United Kingdom
and India. We chose India because it is much more affordable compared to India.
For instance, marketing cost and transport cost are much lower when compared
to the U.K.
Company Contacts
Dr. Muruga
Principal Consultant
012-221 2332
drmuruga@ezucway.com
Navin Muruga
Marketing & Operations Manager
012-307 2432
navin@ezucway.com
Team Members
Caroline, Quan
Shanker Joyrama
Abul Kalam Mohammed Sharul Islam
Navin Murugamoorthy (012-307 2432)
0402D46528
0402D44435
0402D46282
0402D45251
54
PROGRESS REPORT
3.0 Situation Analysis
3.1 Business Environment
56
required for import, service activity allowed, full freedom for subcontracting and may
import without payment of duty.
Intellectual property rights in India are also vital to be taken into consideration.
The four main aspects of Indias intellectual property rights regime are such as patents,
trademarks and copyrights. For instance, The Indian copyrights law can protects The
EZUC personal development seminar contents.
3.1.5 Infrastructure
Improved port facilities and the effective use of electric power resources have
helped industrial development in Tamil Nadu. Cotton ginning, spinning and weaving
continue to be the major industries, followed by the production of automobiles,
motorcycles, diesel engines, sugar, agricultural implements, fertilizers, cement, iron &
steel, paper, chemicals, transformers and electric motors.
3.1.6 Demographics Trends of Tamil Nadu
Possessing one of the largest economies among states in India, Tamil Nadu is the
second most industrialised state next to Maharastra. The State Domestic Product stands at
about Rp.685 billion and current exports are around Rp. 153 billion. With a population of
62.4 million people with a literacy rate of 73.45 %8 and per capita income of 23 476 Rs, it
is growing at an amazing pace. In 2006, it is projected that Tamil Nadus population
would have increased to 65 million people9.
The English language enjoys associate status but is the most important language
for national, political, and commercial communication; Hindi is the national language
and primary tongue of 30% of the people; there are 14 other official languages which
include Bengali, Telugu, Tamil, Urdu, Gujarati, Malayalam and Sanskrit to name a few.
The main religions of those in Tamil Nadu are Hindus, Muslims, Christians and Sikhs.
3.1.7 Bilateral Agreements between India and Malaysia
Malaysia has signed a few agreements with India. These agreements include Bilateral
Investment Promotion & Protection Agreements (BIPPA) and Double Tax Avoidance Agreements
(DTAA). Malaysia also has joint business councils and joint commissions with India.
8
Directorate of Census Operations - Tamil Nadu : Primary Census Abstract - Census 2001, 2001
Available: http://www.census.tn.nic.in/pca2001.aspx
9
Tamil Nadu Statistics at a Glance 2004, 2004
Available : http://www.tn.gov.in/misc/tnataglance.htm#VITAL%20STATISTICS%202003
57
and
organizations
including
numerous
10
11
Corporate
Organizations,
58
1,080,264,388
1.4%
0-14 years: 31.2% (male 173,634,432/female 163,932,475)
15-64 years: 63.9% (male 356,932,082/female 333,283,590)
65 years and over: 4.9% (male 26,542,025/female 25,939,784)
Literacy
Female: 48.3%
Labour force
482.2 million
Source: CIA-The World Factbook-India: People, Economy, 2005
India is the second most populous country in the world at present 12, with a
population of over one billion as indicated in Table 1 above (Refer also to Appendix A).
To add on, the estimated population growth rate is at 1.4 percent. Thus, this is a plus point
of exporting The Easy UC Way Seminars where a larger target market is reachable. The
12
59
larger Indian market or population may imply that even a small market share would
represent a huge sales volume. As shown above, population in India can be divided in
three age brackets: 0-14 years, 15-64 years and 65 years and above. EZUC may only
customize their program development seminars suitable for adult age between 20 and
above.
Concentrating on the whole of India will probably be tough and hard to manage.
Thus, EZUC has decided to focus on Tamil Nadu specifically. As revealed in Table 2,
Chennai city comprises of a total population of 4,216,268 in Tamil Nadu state in 2001.
Out of this, 1,441,382 persons were classified as workers and this constitutes 34.19
percent of the total population in Chennai city. Chennai appear to have the second highest
total population and total number of workers in the Tamil Nadu state. This is probably
very much due to the ever growing economical situation in India and particularly
Chennai city.
As mentioned, The Easy UC Way Seminars may be targeted at working people or
the middle to higher income earners. Tamil Nadu has a high number of workers. This can
be supported by the fact that more people are working now and this will eventually lead
to increased demand for personal development seminars resulting from growth in
personal income. This also contributes to the fact that more disposable income is
available to the customers to fulfil their needs and wants and hence a greater concern will
be set to improve their lifestyle by willing to spend on attending seminars.
3.2.3 Market characteristics
Registration Requirement
Exporting personal development seminars abroad may have low barriers to entry
which allowed almost anyone with a degree to penetrate in this growing market.
Nevertheless, in order for EZUC to gain entry into foreign countries, it requires them to
obtain licenses or permit for their seminar before granting import approval. Other
alternative approach may be taken into consideration in order to avoid the time
consuming rules and regulations such as appointing local distributors, forming
partnerships or forming strategic alliances with foreign companies. Further market
research will have to be done to gather information regarding the laws and government
controls in India.
60
Kotler, P., Adam, S., Brown, L., Armstrong, G. 2003, Principles of Marketing, 2nd edition, Prentice Hall,
Australia. pp217
14
Kotler, P., Adam, S., Brown, L., Armstrong, G. 2003, Principles of Marketing, 2nd edition, Prentice Hall,
Australia. pp218
15
Kotler, P., Adam, S., Brown, L., Armstrong, G. 2003, Principles of Marketing, 2nd edition, Prentice Hall,
Australia. pp218
61
Way Seminars, for instance, other genres of personal development seminars such as
Emotional Intelligence, Organizational Behaviour and Team Building. Besides, EZUC
may also segment their customers based on their attitude towards the The Easy UC Way
Seminars as EZUCs philosophy is to always creating value for customers on the basis of
honesty and reliability.
Several potential target markets have been identified. The Easy UC Way Seminars
will be targeted mainly at working professionals aged 25 to 40 as it being a major
commercial and business centre in India in recent years. The growing number of firms
and professional labour force will most likely contribute to a good response of The Easy
UC Way Seminars. However, business owners and college students are the alternative
prospective target markets.
Customers Characteristics & Purchasing Power
Tamil Nadus population, as in 2001 stood at 62.406 million (31.401 million
males and 31.005 million females)16 and the Per Capita Income at Current Prices is (Rp.)
2347617. The customers that EZUC aims to attain are the working professionals in the
middle to high income range. Business owners and college students are also seen as
possible customers as they are likely to find the seminars beneficial to their lives as
businessmen and/or students. These categories of customers are selected due to their
relatively high purchasing power.
17
62
corporate seminars. Lately there has been a growth in new age seminars. These seminars
usually teach the concepts of yoga and inner peace and health. For example, Deepak
Chopra is a household name in The United States and his popularity has spread to almost
the whole world.
3.3.2 Local Competitors in India
There are not many local competitors in Tamil Nadu due to the high level of
competition brought about by the international competitors but a couple of these firms are
as follows:
1. Mind Movers Management Consultants Pvt. Ltd.
2. Shabbar Suterwala's Leaders Workshop
3. Middle Earth Consultants
4. See Change Consulting
There was very little information regarding the seminars offered by these companies
and due to lack of secondary data, very limited information could be sourced regarding
these competitors in Tamil Nadu.
3.3.3 Existing and Potential Competitors in Malaysia
Personal Development Leadership Management Corporation (PDL-MC)
PDL-MC is one of the largest training organisations in Malaysia. Their dominance
in the training industry comes from their long establishment which was in 1974. 18 Since
then they have trained around 750,000 individuals from all walks of life. Their market
size is also huge as their participants include people from Japan, England as well as South
East Asia. One of the main reasons behind people choosing their training is because they
provide 70 different types of courses which effectively suits individual and organisations.
Their strategy is to customize their training program so that they can meet the demand of
individuals and organisations. One of their main competitive advantage is that their main
trainer and founder is a Multiple Award Winning and Hall of Fame training consultant, Y.
Bhg. Dato' Lawrence Chan Kum Peng, like "PDL Concept", "Personal Success Cycle",
"Love Motivation, Joy of Working", "Joy of Selling", "Joy of Learning" and
"Musication Training System" have also gained national and international acceptance and
18
63
recognition19. This proved PDL-MC will be a head-on competitor in Malaysia who will
consistently looking for business opportunities in India.
Adam Khoo Learning Technologies Group(AKLTG) - NLP workshops:
AKLTG is another well known seminar providers. They mainly provide 4
seminars which are Patterns of Excellence, I am gifted, so are you, Superkids and
Wealth Academy20. Additionally they also provide public, school and more importantly
corporate training which made it direct competitors with EZUC. One of their main
advantages is that they have some international experience as they also conduct seminars
in Singapore. More importantly this year they are planning to enter Chennai which will
make it even more competitive as Chennai falls into one of the target market for EZUC. It
seems that the competition between AKLTG and EZUC would be more severe than that
of between PDL-MC and EZUC. One of the main reasons is because both AKLTG and
EZUC are similar in size and their target market is also the same. There wont be any
sustainable competitive advantage for AKLTG as they are also new in the Indian market
and this would create an opportunity for EZUC as by providing better seminars can make
EZUC to actually outperform AKLTG.
3.3.4 Other International Competitors in Tamil Nadu
There certainly are international competitors in Tamil Nadu. However, they are
not based in India. The industry is highly outsourced. These international competitors
outsource their marketing activities to local Indian firms. Thus multiple firms will be
selling and marketing these international firms to the Tamil Nadu market. A few of the
major international competitors are:
1. Anthony Robbins and Associates
2. The Chopra Centre
3. Franklin Covey Co.
4. Dale Carnegie Training
There are many other companies who out source their marketing to India but they do
not do so aggressively and organize their seminars in foreign countries. For instance
19
20
64
Robert Kiyosaki markets his seminars in India but holds his seminars in the United
States.
many similarities in culture such as similar languages, traditions and religion. However
the companys experience in Sri Lanka will not be able to provide much needed
information on how business is conducted as business dealing for this international
contract was between The EZUC and the United Nations an international institution.
3.4.4 Technical Capabilities
One of the companys biggest assets is Dr. Muruga. Dr. Muruga is the principal
consultant of the company. He founded the company and designed all of its current
programs and conducts all of them too. He has designed a concept known as The Easy
UC Way where no other company in the training industry promotes a similar concept.
The content and techniques taught in this concept is unique to the company. Dr. Muruga
also has the ability to design new programs to suit new target market or to achieve
different objectives. His versatility and flexibility has allowed the company to access
almost every possible market segment as a special program can be customized for each
segment.
Dr. Muruga has written and published his own book based on the concept of The
EZUC. His book adds validity to his concept and adds to his accreditation. The company
has also designed a working and tested marketing plan. The company has designed
specific marketing messages that appeal to the selected market segments.
A big part of this company is operated through the internet and thus, efficiency
and cost saving systems are implemented. And because this company leans towards
operating as an e-business very low resources are required for its successful operations.
3.4.5 Cost Structure
EZUCs cost structure works in the companys favour as cost is only incurred
when a product is sold. The cost is mainly made up of advertising expenses, hotel
expenses and seminar material expenses. These expenses are only incurred when the
company decides to organize a seminar. Because of the nature of the seminars and the
business all the business operations can be done over the internet. Thus, fixed cost of rent
and utilities can be minimized.
66
The organization chart above shows the 4 members in the company and the roles they
play. Another reason for the company only having four members is because a lot of
EZUCs operations are outsourced to other firms. For instance its marketing activities are
outsourced to 5 different resellers. This allows EZUC to have low human resources.
Less regulation
Research proves that compared to other industries the training industries does not many
legal regulations to accommodate to, making it an easy industry to expand to India.
4.2 Weaknesses
Knowledge of Competitors in foreign Market
Due to lack of popularity in the training industry, there is a lack of knowledge on the
business environment in Tamil Nadu.
Low resources
EZUC has low human resources and lacks financial resources.
Low capital for expansion
EZUC is a sole proprietorship and lacks financial backing.
Limited trainers
Currently The Easy UC Way has only 1 full time dedicated trainer Dr. Muruga. The
lack of trainers is a lack of resources for the company.
Lack of Foreign Business Experience
Because the company has not conducted general business dealings in India before the
company will not be accustomed to its different business culture.
Luxury product
Because of the lack of awareness the market views personal development seminars as a
luxury item instead of a need.
Lack of Management Systems
Low human resources caused lack of management systems being implemented in the
company which has resulted in inefficiency in the management of EZUC.
69
4.3 Opportunities
India renowned as the new powerhouse
India has been dubbed the new power house of Asia. There has been a growth in its
economy and it has become a very attractive nation to expand to.
Growing GDP, population, and market size
These growths potentially increase the size of EZUCs target market size.
Growing professional labour force and growing of interest in new age training
There is a growing interest in new age training. More working people are now seeking
ways to change their life for the better and to work more effectively and efficiently
especially the middle to higher income earners.
Industrial expansion and the larger Indian market
Another reason these seminars will be exported to India is because the Indian market is
bigger than the Malaysian market. Even a small market share would represent a huge
sales volume. As a result of the industrial expansion in Chennai, more firms have been
mushrooming and needed training.
The mindset of Malaysia being a more advanced nation
The Easy UC Way Seminars is based on its founder Dr. Muruga. Dr. Muruga is a
Malaysian. The Indian market has always perceived Malaysia and Singapore as more
advance nations to follow. The fact that Dr. Muruga originates from Malaysia will help to
improve sales in India.
Opportunity to export books to India
Expanding to India allows for Dr. Murugas book to be sold in India huge market.
Opportunity to collaborate with local training providers
EZUC currently has contacts with the local training providers in India and this presents
an amazing opportunity for EZUC to work together with them in order to tap into this
vast market. These training providers are part of an extensive market and thus present
EZUC with the market presence that it needs to be effective in a new market.
70
4.4 Threats
Indias New Status as Asian Powerhouse
Indias new status as the new economic powerhouse in Asia has resulted in the nation
being a popular choice for foreign firms to enter. Its new popularity is also a reason our
company has chosen Tamil Nadu as our foreign market of choice. However the flooding
of foreign firms into India will make it a much more competitive market. This may lead
to potentially saturated market and might prove to increase the barriers to entry into
India.
Existing Competitors in Tamil Nadu
The existence of international training providers in India might prove to be more
competition that The Easy UC Way can handle. Intense competition with these firms may
prove to be very costly and there lies a risk of EZUC being unprofitable in this market.
Lack of Response
Due to the nature of the seminar organized by this company there is no guarantee of
whether the Indian market will take to the concepts preached in a positive manner. There
is a potential of resistance to what the seminar preaches and this would simply mean that
the company would fail or otherwise have to modify its seminars to suit the Tamil Nadu
market.
4.5 Implications of SWOT Analysis
From the SWOT we find that EZUC has many strengths and opportunities to
capitalize on when it approaches the Indian market. One of the key opportunities to
maximize on in Tamil Nadu is the fact that this state is fast becoming a more recognised
economy in Asia. There are new investors and multi national firms investing in India. The
increase in foreign investment will increase level of employment and increase the
standard of living in Tamil Nadu. This will increase EZUCs market size and target
market.
With the increase in the standard of living and the increase in professionals in
Tamil Nadu so will the demand for EZUCs services. EZUCs seminars and programs
have been designed for these target markets. This also allows for EZUC to collaborate
with foreign firms to outsource EZUCs marketing. With the increase in technical
71
capabilities EZUC will have a better chance of finding a worthy partner to represent it in
Tamil Nadu.
The growth in Tamil Nadu economy also brings with it a growth in technology.
This coincides with EZUCs IT based operations. Since EZUCs conducts a lot of its
operations through the internet the increase in technology in India would mean that the
market is becoming more inclined towards e-businesses.
One of EZUCs greatest strength is its versatility and flexibility to design new
programs to suit new target market and their different demands. This will great assist in
EZUCs expansion to India because it will be able to cater to its new target market
detailed needs. It can customize its program to suit the different demands in Tamil Nadu.
The Indian markets mentality that Malaysia is an advanced nation is also a plus
point as it creates superiority for EZUC when compared to local training providers in
Tamil Nadu. However, just as EZUC has strengths and many opportunities it has its equal
share of weaknesses and potential threat in the Tamil Nadu market.
There exists local competitors that the EZUC des not know about and this lack of
knowledge is one of EZUCs major weaknesses. EZUCs low financial capability and
low human resources will also be a weakness when it wishes to expand to India. Lack of
experience and knowledge will be key weaknesses in EZUCs expansion process.
Though Tamil Nadus new popularity is a major opportunity for EZUC it is also a
threat. As it becomes more popular more competitors will start playing the Indian market
and this is a potential threat for EZUC.
72
access to reaching potential customers as well as familiarity with the local marketing
environment.
Advantages
Setting up of operations through a joint venture may provide EZUC with
numerous benefits such as reduce in capital and other resource commitment that is
required, involve a spreading of costs and risk. Both the risk and costs such as marketing
expenditure, seminar materials and trainer fees are absorbed and shared by both parties.
Besides that, joint ventures also enable the access to contacts and expertise in penetration
of the local market.
Joint venture partners may have their own network and set of connections that
could smoothen, facilitate and speed up EZUCs process to set up seminars abroad
without requiring EZUC to conduct much research or allocating time to search for their
own network system. Both companies may also share views on customizing a new
program to meet the Indian market and also form the ability to bring together
complementary skills and assets that neither company could easily develop on its own.
This enables EZUC with its joint venture partner to combine resources, knowledge,
skills, seminar materials and technology to design new seminars and programs to suit
new target market and restructure old ones.
Disadvantages
Selecting the right joint venture partner is often an issue which poses problems
such as risk of conflict. For instance, disagreements and inconsistencies may occur
between EZUC and training providers in India due to the problem of communication and
management when different cultures between two companies are involved. Due to this
reason, joint ventures are expected to have limited lifespan unless the both parties can
develop an agreed corporate mission and agree on a common strategy and mode of
governance21.
Limitation of control may be another setback of joint venturing. EZUC might not
have as much control or be in command of the newly developed programs and seminars.
21
Fletcher, R., Brown, L. (2002). International Marketing: An Asia-Pacific Perspective 2nd edition. Prentice
Hall Australia.pp234
73
For example, EZUC may not have the power and the rights on deciding the message
content and the content of the programs being promoted.
5.1.2 Licensing
Licensing is simply the right to produce its product, use its production processes,
or use its brand name or trademark to another firm (the licensee). In return for giving the
licensee these rights, the licensor collects a royalty fee on every unit the licensee sells 22.
This market entry option can be put into action by licensing a successful training provider
in India to sell the service offered by EZUC. This training provider is expected to have
the expertise in dealing in the local market and understanding of the local business
culture.
Advantages
The main advantage of this market entry option is that it gives an opportunity to
EZUC to test the market before diving into it. This can be beneficial if any uncertainties
or doubts were to occur in entering the market directly. Licensing also allow EZUC to
enter new markets without the expense of starting independent production. Providing
licensing to a company overseas allows the The Easy UC Way Seminars to enter the
market without payment of customs duties, and licensors may benefit from lower set up
costs.
Disadvantages
The main disadvantage of entering the market via a licensee is that there are
limited returns garnered by EZUC. If the licensee fails to market the service successfully,
this would mean that the returns would be much lower than expected. Licensing a service
to a company in India may also lead to the cloning of the service offered by EZUC.
Another disadvantage of entering the market via a licensee is that the licensee
may not fully develop the potential of The EZUC. This can lead to serious damage to the
image of the service permanently if EZUC plans to enter the market after the agreement
with the licensee expires.
22
74
75
Option 1:
Option 2:
Option 3:
market
Gender
Age
Region
Tamil Nadu
Tamil Nadu
Tamil Nadu
Education
post-graduates,
post-graduates,
performing tertiary
professionals
Occupation Working Professionals
professionals
Business Owners
level
College Students
Lifestyle
concern of wealth
management,
working environment
entrepreneurship and
conscious
health conscious
Rely or depends on
parents
upper class
middle class
Income
Social class
Promotion
public transportation.
- Offer one month early bird discount
76
Price
Promotion
Price
public transportation.
- Offer early bird discount
Moderate to premium price cater for middle to higher income brackets
Promotion
Price
77
High Price
High Price
High
Quality
High
Quality
Low
Quality
Low Price
Table 7A: Option
1&2 position
Low
Quality
Low Price
Table 7C: Option 3
position
78
Financial Outcome
Revenue = Average of 10 participants per seminar
Rp. 15, 000 (Fees per person) - 10% Discount for early bird (Rp. 1, 500) = Rp. 13, 500
Revenue per Person
Rp. 13, 500 * 10 Participants/seminar = Rp. 135, 000 Total Revenue
Rank
Country
Population
World
6,446,131,400
China
1,306,313,812
India
1,080,264,388
European Union
456,953,258
United States
295,734,134
Indonesia
241,973,879
Brazil
186,112,794
Pakistan
162,419,946
Bangladesh
144,319,628
10
Russia
143,420,309
11
Nigeria
128,765,768
12
Japan
127,417,244
13
Mexico
106,202,903
14
Philippines
87,857,473
15
Vietnam
83,535,576
16
Germany
82,431,390
17
Egypt
77,505,756
18
Ethiopia
73,053,286
19
Turkey
69,660,559
20
Iran
68,017,860
Information
79
21
Thailand
64,185,502
22
60,764,490
23
France
60,656,178
24
United Kingdom
60,441,457
25
Italy
58,103,033
26
Korea, South
48,640,671
27
Ukraine
46,996,765
28
Burma
46,996,558
29
South Africa
44,344,136
30
Colombia
42,954,279
Total
population
workers
Thiruvallur
District
Percentage of Total
Workers to Total Population
2001
1991
Variation
2,738,866
1,025,961
37.46
37.19
0.27
Chennai
4,216,268
1,441,382
34.19
30.54
3.65
Kancheepuram
2,869,920
1,142,662
39.82
38.88
0.94
Vellore
3,482,970
1,427,003
40.97
40.42
0.55
Dharmapuri
2,833,252
1,419,617
50.11
47.60
2.51
Tiruvannamalai
2,181,853
1,062,317
48.69
45.64
3.05
Viluppuram
2,943,917
1,436,373
48.79
45.36
3.43
Salem
2,992,754
1,452,366
48.53
47.31
1.22
Namakkal
1,495,661
841,816
56.28
53.02
3.26
Erode
2,574,067
1,431,276
55.60
52.30
3.30
The Nilgiris
764,826
346,669
45.33
40.67
4.66
Coimbatore
4,224,107
1,969,332
46.62
45.13
1.49
Dindigul
1,918,960
972,775
50.69
49.12
1.57
Karur
933,791
495,737
53.09
51.52
1.57
Tiruchirappalli
2,388,831
1,055,580
44.19
41.20
2.99
Perambalur
486,971
267,042
54.84
54.25
0.59
Ariyalur
694,058
345,132
49.73
51.87
-2.14
Cuddalore
2,280,530
974,966
42.75
41.49
1.26
80
Nagapattinam
1,487,055
584,310
39.29
40.46
-1.17
Thiruvarur
1,165,213
489,904
42.04
42.19
-0.15
Thanjavur
2,205,375
910,414
41.28
39.79
1.49
Pudukkottai
1,452,269
677,314
46.64
44.25
2.39
Sivaganga
1,150,753
509,493
44.27
46.24
-1.97
Madurai
2,562,279
1,081,686
42.22
42.12
0.10
Theni
1,094,724
519,449
47.45
48.28
-0.83
Virudhunagar
1,751,548
880,579
50.27
50.08
0.19
Ramanathapuram
1,183,321
520,623
44.00
45.28
-1.28
Thoothukkudi
1,565,743
673,682
43.03
41.59
1.44
Tirunelveli
2,801,194
1,310,582
46.79
47.18
-0.39
Kanniyakumari
1,669,763
545,605
32.68
30.50
2.18
TAMILNADU
62,110,839 27,811,647 44.78
43.31
Sources: Census of India 2001-Tamil Nadu-Paper 3 (2001)
1.47
Bibliography
Books:
Kotler, P., Adam, S., Brown, L., Armstrong, G. 2003, Principles of Marketing, 2nd
Edition, Prentice Hall, Australia.
Websites:
Wikipedia - Economy of India, January 2001
Available: http://en.wikipedia.org/wiki/Economy_of_India
Group
Membe
r
All
08/08/05
All
11/08/05
All
18/08/05
All
Purpose of Contact/
Visit
Result
1. Identify the
company
2. Selection of the
services
1. Selection of the
country
2. Establish the
contact with EZUC
3. Co-ordinator
nominated
1. Discussion for the
company condition
2. Description of the
service
3. Identify the
potential of the
Indian market
1. Analysis of the
working population
Budget
Hours
Actual
Hours
1 hour
1.5
hours
1 hours
1.5
hours
1.5
hour
2
hours
1 hour
82
22/08/05
All
25/08/05
All
01/09/05
All
05/09/05
All
10/09/05
All
13/09/05
All
17/09/05
All
21/09/05
All
26/09/05
All
in Tamil Nadu
of the Business
2. Situational analysis Environment and Market
analysis
1. Analysis of the
All have a brief summary
competitors
of each part
2. Organisation assets
and skills
1. Further discussion All have the main
of the competitors
structure
2. Further search for
organisation asset and
skill
Analysis of SWOT
Allocation of the work
1. Review of the
SWOT
2. Evaluation of the
alternative marketing
strategies
1. Evaluation of the
final outcome of each
part
1. The final outcome
of the evaluation of
alternative marketing
strategies
2. The format of the
progress report
1. Other criteria
needed in the
progress report
2. Combination of all
the parts (include
referencing and
appendices for
progress report)
1. Discuss the
remaining part of the
final report
1. Discussion on
correction for the
progress report
2. Discussion on what
are the essential
issues should be
included in final
report
3. Search the relevant
information
2.5
hours
2.5
hours
1 hour
1.5
hours
2.5
hours
2.5
hours
2.5
hours
2
hours
1.5
hours
1.5
hours
1 hour
1.5
hours
All completed
2 hours
2
hours
1 hours
1 hour
3 hours
2.5
hours
83
01/10/05
All
1. Discussion on
company objectives
2. Discussion on
more detailed 7Ps
and target market
1. Completed
2. Should include more
detailed information
2 hours
2.5
hours
03/10/05
All
1. Completed
2. Some parts(P&L
Statement) have to be
modified
2 hours
2
hours
04/10/05
All
1.5
hours
All
2 hours
06/10/05
1 hour
1 hour
10/10/05
All
13/10/05
All
15/10/05
All
16/10/05
All
1. Evaluation of the
work on 1/10/05
2. Discussion on
economic evaluation
topics
1. Contacted Mr.
Sham Mudgil from
The High
Commission of India
1. Further discussion
on economic
evaluations
1. Review of the
analysis and forecasts
regarding sales,
market share, profits
and costs
2. Discussion on
action plans,
monitoring plans and
contingency plans
1. Review of action
plans, monitoring
plans and
contingency plans
1. Evaluation of all
the work
2. Discussion on the
overall final report
format
1. Final editing,
review and evaluation
of each part of the
report
2. Combination and
compiling of all
group members
work
2
hours
1 hour
1 hour
2.5
hours
2.5
hours
2.5
hours
2.5
hours
84
85