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1.

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.

Objective of Marketing Plan


The Malaysian market for training programs is relatively small and immature. Public
seminars do not do as well as seminars specially organized for the corporate. Thus, The Easy UC
Way has decided to enter the corporate market. However, The Easy UC Way is essentially a
public training provider. With the Malaysian market not generating a positive response The Easy
UC Way looks at other markets which can potentially show positive returns. Tamil Nadu, India
suits this new market description. South India is fast becoming Asias new power house. With this
new economic growth and world wide popularity India has the potential of showing a very
positive response to public seminars as the nations standard of living generally increases.
This marketing plan will provide a systematic and organized approach to the Tamil Nadu
market.

3.0 Situation Analysis


3.1 Summary of Business Environment
Tamil Nadu has been a very attractive location for foreign investment as it has been the
most industrialized state in India. 34% of the population stays in urban area and work for
multinational firms. Their social role has been going through changes as a lot of women now
work and this means more income for the family. And its not only the people, there has been rapid
development in the technology with the highest rural telephone connectivity in the country and
this is making internet very popular in Tamil Nadu. All these have contributed greatly to the
economy of Tamil Nadu as a lot of foreign companies are establishing in Tamil Nadu. The foreign
company needs to register themselves with the Register of Companies as they need to comply
with The Companies Act 1956. Furthermore a new policy has been implemented under which
foreign companies can have competitive and hassle free environment for exports and imports.
Intellectual property is also common in India which makes foreign companies feel safe with their
creativity. Malaysia has signed few agreements with India some of which are Bilateral Investment
Promotion & Protection Agreements (BIPPA) and Double Tax Avoidance Agreements (DTAA).
For foreign businesses there are options regarding opening of bank accounts in Tamil Nadu and
therefore there are choices from which foreign investors can choose the one that best meets their
needs. Lastly it is necessary for foreign individuals to obtain business visa which would allow
them to stay in India and carry out any trade or businesses.

3.2 Summary of Market Analysis


Tamil Nadu is the main market in India where EZUC would be competing. It is an ideal
market as it is currently the growing technology hub of India. India being ranked as one of the
largest GDP in the world and where there are large employment opportunities, targeting the Tamil
Nadu market is the most promising and profitable for EZUC. Even though it might seem as very
promising but the presence of competitors such as seminars of Anthony Robbins and Associates
would make it hard for EZUC to compete for the market share in Tamil Nadu. On the other hand
it should be mentioned that as India is a very large country so the concentration is based on Tamil
Nadu which itself has a large population. This means that even a small market share would
represent a huge sales volume. As more people are being educated the future prospect for EZUC
seems bright as with higher education, peoples income would be increasing which means more
disposable income to spend on seminars for personal development. The main target market
consists of people between the age of 25-40 who are working and have considerable education

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.

3.3 Summary of Competitor Analysis


In India the training industry is very competitive. Surprisingly the competition is not
great from local Indian companies rather the foreign firms dominates the Indian seminar market.
Even though there are few local firms that provide seminars such as Mind Mover Management
Consultant Pvt. Ltd there are quite a few Malaysian competitors that are actually looking forward
to enter the Indian market and compete for market share. One of these is mainly Adam Khoo
Learning Technologies Group-NLP workshop which is also a Malaysian company and like EZUC
looking forward to reap benefits from Indian market. There are also other foreign firms such as
Anthony Robbins and Associates which might be one of the toughest competitors for EZUC.

3.4 Summary of Organisation Assets and Skills


Being a new company in the training industry EZUC has actually been quite successful.
Over the years the company never had to use outside capital rather with its own capital from the
founder it had attracted corporations like Maybank, RHB and arranged seminars for government
departments. The company makes an estimated profit of RM 3,000 for every public seminar
organized and RM 4,000 for in house corporate seminars. This high profit margin has been a key
factor of the companys survival during its early stages of growth. On top of high revenue, the
company has limited expenses as most of the expenses are variable cost such as advertising and
hotel expenses with very little fixed costs. Other than that the company has limited exposure to
the international arena and the only experience they have is that in the past its service has been
contracted to the United Nations in Sri Lanka. The EZUC has seeing this as an advantage as both
Sri Lanka and India have similar culture and therefore would not be of great trouble. One of the
main assets of the company is Dr. Muruga who is the founder of the company and also the trainer.
Dr. Muruga has the ability to design new programs to suit new target market and therefore it is
very flexible which means programs can be customized and targeted to any segment of the
market. The company mainly operate through internet which means cost saving and improvement
in efficiency. The company is based on the philosophy of creating value for customers. By
providing 24 hours standby service as well as free monthly follow up sessions, customer do get
more than expected. Furthermore, the company also offer money back guarantee which means
anyone who is not satisfied with the outcome of the seminar would be refunded. This put a very
favourable image about the company and the EZUC claims themselves to be operating on the
basis of honesty and reliability.

4.0 SWOT Analysis


4.1 Strengths
Ability to design new programs to suit the intended market segment.
Dr. M is able to design new programs which can be specialized and customized for a particular
target market.
Trainer able to converse in Tamil
This will make communication between trainer and participants much smoother as Tamil is one
of the national languages of India.
Prior experience in Sri Lanka
The trainers prior experience in Sri Lanka (which has very similar cultural characteristics to
India) provides experience and will help ease business dealings.
Existing contacts in India
Dr. Murugas prior visits to India have allowed him to build relationships with individuals in
India. These individuals are prepared to assist in his companys international expansions.
Published book adds to accreditation.
Dr. Murugas bestselling book adds authority and credibility to the company.
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 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.

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.

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.

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.

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.

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 the standard of living in Tamil Nadu. This will then increase
EZUCs market size and target market.
With 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 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.

5.0 Evaluation of Alternative Marketing Strategies


5.1 Alternative Market Entry Strategies:
5.1.1 Joint Venture
Joint venture refers to co-operation on a project or business between two or more
corporate bodies. The EZUC may cooperate with various training company in India providing
personal development training where both parties agree to create a new entity together by both
contributing equity, and they then share in the revenues, expenses, and control of the enterprise.
For instance, EZUC may contribute to the management of seminars and training experties whilst
the local partner in Tamil Nadu may provides 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 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

The McGraw-Hill Companies International Business: Student Resources-Glossary-Licensing, 1998


Available: http://www.mhhe.com/business/management/hill/student/olc/gl_l.html

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5.1.3 Direct Exporting


One method of market entry into India is through direct exporting. The company can
source for multiple agents in the Tamil Nadu market to market and sell its seminars while the
company maintains operations from Malaysia. These agents will be responsible for promoting
and selling seats for the seminars that will be organized for EZUC in Tamil Nadu. These agents
will be given different geographical coverage for marketing. They will be provided with
marketing content and will receive advice from the company on how to market the seminars.
These foreign agents will be compensated based on commission schemes. For every sale they
make they will be given a percentage of the selling price.
Advantages
By employing a direct exporting strategy to enter the Indian market, the company will
benefit from lower marketing cost. This is because the major cost in organizing a seminar lies in
marketing. With direct exporting local agents in Tamil Nadu will absorb the marketing cost. This
cost will be covered by commission agreements between the company and the agents in Tamil
Nadu. With this strategy the company does not have to worry about high initial costs for
marketing and raising awareness.
Disadvantages
The disadvantage of direct exporting is that the company will be committed to continuous
assistance to agents in Tamil Nadu. This will mean extra resources to provide assistance and
potentially extra cost for training and product knowledge. There is also a chance that agents will
misrepresent the company and these problems will take time to be solved. The use of commission
schemes will mean that the performance of these agents will depend on how attractive the
commission schemes are. If another training provider has an agreement with these agents for a
more attractive commission scheme these agents will focus on selling the other training providers
services instead of The Easy UC Way Seminars. Furthermore, the expansion of the business to
Tamil Nadu will heavily depend on the relationship of the agents and the business. This will mean
that sour relationships could lead to a total failure in international exposure for the business .

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5.2 Alternative Target Market, Positioning and Marketing Mix


Strategies

5.2.1 Alternative Target Market:


Target

Option 1:

Option 2:

Option 3:

market
Gender

both male and female

both male and female

both male and female

Age

ranging from age 25-40

ranging from age 30-50

ranging from age 20-25

Region

Tamil Nadu

Tamil Nadu

Tamil Nadu

Education

high school graduated,

high school graduated,

high school graduated,

post-graduates,

post-graduates,

performing tertiary level

professionals

professionals

Occupation
Lifestyle

Working Professionals

Business Owners

College Students

career minded and concern

concern about financial

concern about future

of wealth generation and

management,

working environment

health conscious

entrepreneurship and
health conscious

Income

Social class

People who earn above Rs.

People who earn above

Rely or depends on

30,000 per month

Rs. 50,000 per month

parents

middle to upper class

upper class

middle class

5.2.2 Alternative Positioning and Marketing Entry Strategies:


Option 1: Working Professionals
The EZUC will position its service as a high quality service at a higher price targeting middle to
higher income earners. (Table 7A)
Product/Service

The Easy UC Way Seminar cover 3 areas of professionals life: wealth

Title
Place

generation, health and relationships.


Will be held in conference hall or meeting room in hotels located in the city

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facilitating customers to travel conveniently as well as reachable by public


Promotion

transportation.
- Offer one month early bird discount

Price

- Corporate rates and group rates


Moderate to premium price cater for middle to higher income brackets

Option 2: Business Owners


The EZUC will position its service as a high quality service at a higher price targeting middle to
higher income earners. (Table 7A)
Product/Service

Millionaire Entrepreneur a reality business stimulation game based on the

Title
Place

concepts of accelerated learning techniques.


Will be held in conference hall or meeting room in hotels located in the city
facilitating customers to travel conveniently as well as reachable by public

Promotion
Price

transportation.
- Offer early bird discount
Moderate to premium price cater for middle to higher income brackets

Option 3: College Students


The EZUC will position its service as an exceptionally affordable and reasonably priced service
targeting students. (Table 7B)
Product/Service

The Easy UC Way for Grads Seminar - prepare college students for the

Title
Place

working environment, making career choices and planning their future.


Will be held in seminar based resort and pre-arranged transportation such as

Promotion

shuttle bus services available.


- Offer student discount and group discount

Price

- Instalment payments available


Exceptionally affordable and reasonably priced

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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

5.2.3 Preferred Strategy


Summary
After careful evaluation of each form of market entry, we have come to the conclusion
that EZUC will benefit the most by penetrating the Indian market via a joint venture. The main
target market would be working professionals and EZUC will position itself as a one-stop
solution for all problems inclusive of health, relationships, financial management and career
towards the working professionals. Moreover, EZUC will also position itself as being affordable
by targeting mainly those middle to higher income earners. The Easy UC Way Seminars will be
held in a conference hall in hotels within the city centres in Tamil Nadu making it convenient to
those attending. The main form of promotion entitled to those attending this seminar would be a
10% early bird discount.

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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.

6.1.2 Corporate Strategy

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.

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6.2 Company Product/Market Objectives


1. Steady increase sales
Sales Forecast
Year 1: 180 participants
Year 2: 240 participants
Year 3: 300 participants
2. Increase in The Easy UC Way Seminar market share to 10% of total Tamil Nadu market
of middle to high income earners in 10 years.
3. Raise the level of awareness in the Tamil Nadu market about EZUC
4. Educate the target market on EZUC product offerings and benefits

6.3 Business Objectives


1. Profit in Year 3 of operations
Profit forecast
Year 1: -RM 82, 692.00 (loss)
Year 2: -RM 18,819.00 (loss)
Year 3: RM 28,376.52
2. The Easy UC Way will be the No. 1 choice for wholesome personal development in
Tamil Nadu

3. Additions of new products and services that can help individuals improve themselves in
all areas of their life.

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7.0 Recommended Marketing Strategy


7.1 Target Market
The target market for EZUC is mainly based on the population of Tamil Nadu. To be
more precise the target market consists of both male and female as seminar in general is for
everyone and does not differentiate between the genders. The age group mainly falls under 25-40
and people who are at minimum a high school graduate. It also consists of people who has
already done post graduation or those who are professionals. The target market is mainly those
who are well educated and has an income level of at least Rp. 30,000 per month. Seminars are
costly and therefore people with middle to higher income are the main target customers of EZUC.
Their buying power would determine the demand for the seminars.
The growing number of working class has revealed a distinctive lifestyle. They are usually career
minded and have deep concern about wealth generation and health management and to achieve
this kind of lifestyle makes seminar popular. The working professionals who are the target market
for EZUC demands seminars that would improve their well being and show them ways through
which they can balance their life with business and pleasure. The working professionals seek
perfection in their life and the seminar provides complete solution to them. With more working
people and with people with more money to spend makes them the ideal target market for EZUC.
In a nutshell the target market for EZUC consists of people with middle to high income and also
professionals falling between the ages of 25-40. To appreciate what the seminar is all about, the
target market also has to be educated and therefore EZUC target customers who at least is a high
school graduate.

7.2 Market Entry Strategy


The EZUC would use joint venture to penetrate the Indian market. It refers to cooperation on a project or business between two or more corporate bodies.The parties agree to
create a new entity together by both contributing equity, and they then share in the revenues,
expenses, and control of the enterprise. The EZUC may cooperate with various training company
in India providing personal development training where each brings different strengths and
capabilities to the arrangement. To approach various training companies, EZUC can first employ
intermediaries who would then be able to link the most preferred training companies to EZUC.
By using intermediaries therefore would make it easier for EZUC to evaluate and choose the best
company that EZUC can work with.
Using joint ventures with an Indian company would bring enormous benefits for EZUC.
Firstly cost and risk would be reduced by spreading the cost between the two companies. Both the

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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.

7.3 Market Positioning Strategy


The EZUC should use strategy of differentiation to enter the Indian seminar market. It
can be differentiated as high quality and higher price comparing to others local competitors. By
charging higher prices would also differentiate EZUC seminar from the local competitors and
being a foreign company, EZUC can charge higher prices. Customers would see the benefit of
paying higher pricing as they would also take it as a better quality service compared to the local
competitors. To maintain the exclusivity of the seminar provided by the EZUC, their target
market is therefore people from middle to higher income group would be willing to pay extra for
the better service. It is also important to choose the local joint venture wisely as failure to choose
a reputed joint venture can cost EZUC heavily as it would create a negative image about EZUC
seminars.

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7.4 Marketing Mix Strategies:


7.4.1 Product/Service
A straight extension strategy will be adopted by EZUC when it enters the Indian market.
This means it will introduce the exact same seminar that it organizes in Malaysia to Tamil Nadu.
Only one seminar will be introduced in the Tamil Nadu market to create a focused approach to the
Tamil Nadu market. EZUC will introduce its maiden seminar The Easy UC Way Seminar. The
seminar has a similar name to the company name. This particular seminar was designed to target
the working professionals who are the middle to high income earners in Tamil Nadu.
The seminar is based on the concept of reprogramming the subconscious mind and
approaches the three main areas of an individuals life; health, relationships and career. Other
seminars do teach the techniques of reprogramming the subconscious mind. These techniques
have become very popular over the years. For instance, visualization, verbal affirmations and
audio affirmations are common techniques practiced by individuals. However, these techniques
have failed to catch on because of the difficulty it takes to practice these techniques. The Easy UC
Way introduces a new technique known as Written Affirmations which is extremely easy to
practice and have showed results.
The basic seminar modules are as follow:
Day 1
Day 2

Ice Breaking, Powers of Subcon Mind, Belief Systems, Money Management


Health, Relationships 3 Secrets, Reprogramming Techniques, Habit Formation

The Three Levels of the Product

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

The Product Life Cycle


The Easy UC Way is at the introduction stage of the product life cycle. Introduction is a
period of slow sales growth as the product is being introduced in the market. Profits are non

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

The Product Life Cycle


(Kotler, Adam, Brown & Armstrong: 2003, p.314)

7.4.2 Pricing Strategy


The Easy UC Way Seminar will be highly priced to create an image of high price and
high quality. Through the cost plus method the decided price of the seminar is RM 1,200.00 / RP
13,900.

20

Cost Plus Method


To determine the price through the cost plus method, total cost must be identified. Total
cost is made up of fixed cost and variable cost.
The table below is a description of total cost for organizing seminars in Tamil Nadu.
Fixed Cost
Marketing Cost
Trainers Fee
Travel Cost
Trainers Lodging
Trainers Allowance
Operations Cost
TOTAL

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

Unit Cost = Variable Cost + Fixed Costs/Unit Sales


RM
RP
Unit Cost
300 + (207,600/300)
3,561.61 + (2,464,636.13/300)
Unit Cost
992
11,777.06
Unit Cost was calculated with the assumption that totals sales will be 300 participants per year.
EZUC wants a 15% markup on sales.
Markup Price = Unit Cost / (1-Desired return on sales)
Markup Price
Markup Price
Selling Price

RM
992 / (1-0.15)
1167.05
1,170.82

RP
11,777.06 / (1-0.15)
13,855.36
13,900.00

Price Skimming Strategy


By making a profit of up to 15% and pricing the seminar at RP 13,900 EZUC is adopting
a market skimming pricing strategy. This strategy will allow EZUC to skim maximum revenue
from the segments that are willing to pay a high price for the seminar. The price skimming
strategy will be effective because EZUC is a foreign firm in India and the mentality of foreign

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

Free Consultation through E-Mail


Every first ten registrants will also be entitled to free email consultation via email before the
seminar date. This free consultation with Dr. Muruga is low in cost and adds value to the seminar.
Free Preview
Free previews are sessions where potential customers get to experience a glimpse of what the
seminar is about at a half an hour session. This session will be free and will give potential
customers a chance to experience the trainers training style and the modules covered.
Public Relations
Public relations activity will contribute by raising awareness about The Easy UC Way
Seminar. EZUC can use Dr. Murugas best selling self help book as a method of getting public
relations activity with the press. Daily newspapers and magazines frequently write articles on
books and authors. Public relations activity can also be done through organizing charitable
events. For instance, personal development talks can be held for free at orphanages for children.
These activities if done regularly will provide EZUC with positive publicity.
Personal Selling
Personal selling plays an important role in converting potential customers to real
customers. After building a database of potential participants from advertisements, public relation
activities and sales promotions personal selling will convert these potentials into real participants.
Personal selling is also extremely costly. Thus, in the first three years of operations minimum
focus will be placed on personal selling.
Setting the Total Promotional Budget
Objective-and-Task Method
The objective-and-task method develops the promotional budget by defining the objectives,
determining the task that must be performed and estimating the cost of performing these tasks.
The objectives are to; raise awareness, educated the target market and increase the sales volume.
Task to be performed
1. High frequency advertisements in newspapers
2. Sales Promotion
a. Free book for first ten registrants
b. Free consultation through e-mail
c. Free preview sessions

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

Cost per Unit


RM 2000
RM 10
RM 300
RM 1,000
RM 1000 per month

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.

7.4.7 Physical Evidence


Testimonials play an important role in the training industry because it is physical
evidence that a seminar is worth investing in. It creates positive word of mouth which is one of
the best ways to sell a seminar. Testimonials have to be placed in all of EZUCs promotions and
marketing activities. The website and brochures distributed by EZUC should contain testimonials
to add accreditation to the seminar. Since the seminar is intangible it is very important for these
testimonials to be used because it is physical prove that the seminar is good.

8.0 Economic Evaluation


8.1 Planning Assumptions
To make the project as accurate as possible several realistic assumptions are made. This
would also mean that if at any point one of the assumptions is change, it might results to some
changes of the conclusion that have been made. The assumptions are based on market sizes,

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.

Government of Tamil Nadu, 2004


Available:
http://www.tn.gov.in/misc/tnataglance.htm#AREA%20AND%20POPULATION%20(2001%20Census

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

Net Operating Profit/Loss before Tax


Company tax ( 35% of total income )

-82,692
0

-18,819
0

28,377
9,932

Net Profit(+) / Loss(-)


-82,692
-18,819
18,445
*Assumptions are listed at the end of Section 8.4 as the assumptions apply to all three Scenarios
projected.
Under the Most Likely Scenario Projections, for the first year of operations, we expect to
have a total of 30 participants for each seminar which would equate to 180 participants in total.
This figure is expected to increase to 240 in Year 2 and 300 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.
Formula of Break Even Analysis

Fixed costs / (Unit Price Variable costs)

207600 / (1170.82 300)

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.

8.4 Sensitivity Analysis


28

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

Net Profit/Loss before Tax


Company tax ( 35% of total income )

-165,964
0

-113,210
0

-66,014
0

Net Profit(+) / Loss after tax(-)


-165,964 -113,210
-66,014
*Assumptions are listed at the end of Section 8.4 as the assumptions apply to all three Scenarios
projected.
Under the Worst Case Scenario, for the first year of operations, we expect to have a total
of 10 participants for each seminar which would equate to 60 participants in total. This figure is
expected to increase to 120 in Year 2 and 180 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.

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

Net Operating Profit/Loss before Tax


Company tax ( 35% of total income )

83,852
29,348

169,962
59,487

217,158
76,005

Net Profit(+) / Loss(-)

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.

9.0 Implementation and Control


30

9.1 Action Plan for Implementation of Recommendations


Marketing implementation is regarding converting the marketing or project plan into
actions after having thoroughly understood the environment and discovered strengths,
weaknesses, opportunities and threats. It is a fundamental part of any marketing management
process to exploit these opportunities and be wary of the identified threats.

9.1.1 Projected Plan


TIME FRAME: the first year of launching the service

Activity

Responsible

Start Date

Completion
Date

Research
-

Business/Company
Analysis

Situational Analysis

Service Analysis

Marketing Strategy

Economic Evaluation

Goal Setting

Budget Analysis

IT & Marketing Executive

1/02/06

01/02/06

Marketing & Operations Manager


IT & Marketing Executive
Marketing & Operations Manager
Corporate Account Manager
C.E.O
Corporate Account Manager
Marketing & Operations Manager

Other Factors
Selecting a Partner

C.E.O

11/06/06

30/06/06

Setting up a website

IT & Marketing Executive

01/07/06

14/07/06

IT & Marketing Executive

13/07/06

13/07/07

Principal Consultant

14/08/06

14/08/06

Partner in Tamil Nadu


Corporate Account Manager

30/08/06

30/08/06

30/08/04

01/09/04

Promotion
First Seminar
Reporting sales performance
- Monthly report
Salary payment
-

Wages for personnel

9.2 Monitoring of Action Plan


EZUC should take regular and consistent review during and after the implementation of
its marketing strategy. It is critical to measure the differences between the forecasted result and

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.
-

Measuring the sales volume by comparing the market demand of personal


development seminars in Tamil Nadu. This is to determine the effectiveness of
marketing strategies used for attracting customers to attend the seminars.

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.

Measuring the effectiveness of the promotional and advertising strategies used.


This is to find out which ways of promotion and advertising are more effective
and to ensure expense occurred will fruit the best results.

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.

Evaluation of the partners performance to guarantee that they are adhering to


EZUCs requirement and standards.

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.

9.3 Contingency Plans


It is fairly difficult to correctly predict the future, but contingency plans remain vital
because by assuming possible events that may act to impede or accelerate the marketing plan,

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

Fletcher, R., Brown, L. (2002). International Marketing: An Asia-Pacific Perspective 2nd


edition. Prentice Hall Australia.

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

Directorate of Census Operations - Tamil Nadu : Primary Census Abstract - Census


2001, 2001
Available: http://www.census.tn.nic.in/pca2001.aspx

Tamil Nadu Statistics at a Glance 2004, 2004


Available:
http://www.tn.gov.in/misc/tnataglance.htm#VITAL%20STATISTICS%202003

Wikipedia Tamil Nadu: Economy, January 2001


Available: http://en.wikipedia.org/wiki/Tamil_Nadu#Economy

Wikipedia - Economy of India, January 2001


Available: http://en.wikipedia.org/wiki/Economy_of_India

Wikipedia India: Demographics


Available: http://en.wikipedia.org/wiki/India#Demographics

Wikipedia Strategic Alliance


Available: http://en.wikipedia.org/wiki/Strategic_alliance

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

Government of Tamil Nadu-Department of Economics and Statistics: State Income, 2001


Available: http://www.tn.gov.in/deptst/Ecoindicator.htm

CIA-The World Factbook-India: Rank Order-Population


Available: http://www.cia.gov/cia/publications/factbook/rankorder/2119rank.html

CIA The World Factbook, Aug 2005, Economic Overview: India


Available: http://www.cia.gov/cia/publications/factbook/geos/in.html#Econ

Maps of India: Tamil Nadu Location Map, 1997


Available: http://www.mapsofindia.com/maps/tamilnadu/tamilnadulocation.htm

35

Robbins Research International, 2005


Available: http://www.anthonyrobbins.com/Home/Home.aspx

The Easy UC Way: Programs and Trainer profile


Available: http://www.ezucway.com/

Census of India 2001-Tamil Nadu-Chapter 2: Workers and Non-workers, 2001


Available: http://gisd.tn.nic.in/census-paper3/Chapters/Chapter2.htm

Census of India 2001-Tamil Nadu: 2001 Census Provisional Figures-Table 2,2001


Available: http://gisd.tn.nic.in/census-paper3/tables/table2/Table-II.htm

Maps of India: Situations Responsible For Job Outsourcing To India, 1998


Available: http://www.mapsofindia.com/outsourcing-to-india/reasons-foroutsourcing.html

India: Data Protection Update


Available: http://www.legaleagleus.com/wst_page7.html

Robert and The Rich Dad Team


Available: http://www.richdad.com/pages/team.asp

Personal Development Leadership


Available: http://www.pdl.com.my/reasons.html

Adam Khoo Learning Technology Group, 2003


Available: http://akltg.com/programs.php

The McGraw-Hill Companies International Business: Student Resources-GlossaryLicensing, 1998


Available: http://www.mhhe.com/business/management/hill/student/olc/gl_l.html

Appendices
Appendix A Tamil Nadu - Total
36

Parameter
Population

Total

Male

Female

Percentage Sex Ratio

62405679 31400909 31004770

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

40524545 22809662 17714883

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

Main Other Workers

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

34527397 13300512 21226885

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

Appendix B - Tamil Nadu Statistics at a Glance - 2004


AREA AND POPULATION (2001 Census)
Area (Sq.Km.)

130058

Population

62405679

Male Population

31400909

Female Population

31004770

Rural Population

34921681

Urban Population

27483998

Density (per Sq. Km)

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

STATE INCOME 2003-04 (A.E.) (Base Year 1993-94)


(Rs in Lakhs)

Net State Domestic Product at Current Prices

14965415

Net State Domestic Product at Constant Prices

8557266

Percapita Income (in Rs)


At Current Price

23476

At Constant Price

13423

SELECT SOCIO ECONOMIC INDICATORS OF TAMIL NADU AND INDIA


Sl.
Economic Indicators
No

Tamil
Nadu

India

1.

Area ('000' Sq.Kms) (2001 Census)

130

3287

2.

Population ( in Million) (2001


Census)

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.

Density (Population per Sq.Kms)

480

325

4.

Sex Ratio ( Females per 1000

987

933
38

Males) (2001 Census)


5.

Urban Population Percentage (2001


43.86
(P))

27.78

6.

Scheduled Caste Population as


19.0
Percentage of Total Population 2001

16.2

7.

Scheduled Tribe Population as


1.0
Percentage of Total Population 2001

8.2

8.

Birth Rate 2002

18.5

25.0

9.

Death rate 2002

7.7

8.1

10. Infant Mortality Rate 2002

44

64

11. Literacy Rate - 2001 Persons

73.5

64.8

Male

82.4

75.3

Female

64.4

53.7

Literacy Rate - 2000 (P) Rural

65

60

Urban

84

81

12.

Area under Food Grains Rice 2002-03 ('000 Ha)

1517

40279

13.

Production of Rice 2002-03 ('000


Tonnes)

3577

72653

14.

Average Yield of Rice 2002-03


(Qtls. per Ha)

33.5

18.0

15. Total Livestock 1997 (in Lakh Nos) 24.1

485.3

16. Poultry - 1997 (in Lakh Nos)

36.5

347.6

4988

84754

18. Production of Eggs 2001-02 (in Cr)

422.4

3906.9

Annual Survey of Industries


19. (Factory Sector) No. of Factories
(2001-02)

20601

128549

17.

Production of Milk 2001-02 ( '000


Tonnes)

20.

Small Scale Industries (Registered


Units in '000) (2001-02)

419.5

3442

21.

No. of Reporting Mines (All


Minerals) 2002-03

203

3108

22.

Total Applicants on Live Register 2001 ('000 Nos)

4925.5

41995.9

23.

Percapita Consumption of
Electricity (KWH.) 2002-03

815

567

24. Rural Electrification - As on 31.03.2003


Villages Electrified
(Percentage)

100

83.80

39

Pumpsets Energised (in


'000)
No. of Students in Primary and
25. Secondary Schools per 1000
Population (30-9-2000)
26.

Total No. of Motor Vehicles


registered 2001-02

27. No. of Bank Offices of Scheduled


Commercial Banks 2003-04

1676

13792

175

172

5658097 58863027
4757

66970

Deposit (Rs in Cr)

98873

1517200

Credit (Rs in Cr)

88622

890866

Credit Deposit Ratio (%)

89.6

58.72

28. Foreign Direct Investment Approved (2003-04)


Projects (Nos)

261

Investment (Rs in Cr)

1415.18 6833.38

% Share to Total Investment 13.53

1929
100.00

29. Budgetary Position 2002-2003 (B.E.) (Rs in Cr)


Revenue Budget Revenue
Expenditure
Capital Budget Receipts
Disbursements

21318

306943

26862

355166

8870

118812

3327

75768

80245

1308010

30.

Actual Strength of Police Force


2001 (Civil and Armed)

31.

No. of Policemen per 100 sq.km. of


61.7
Area 2001

41.3

32.

No. of Policemen per '000' of


population 2001

1.3

1.3

33.

No. of Newspapers and Periodicals


2002-2003

3093

55780

34.

T.V. Coverage Area (Percentage


March 2003)

93.6

78.2

35.

T.V. Coverage Population


(Percentage March 2003)

93.6

90.1

Source: Tamil Nadu Statistics at a Glance 2004, 2004. Available:


http://www.tn.gov.in/misc/tnataglance.htm#VITAL%20STATISTICS%202003

40

41

Appendix C Table of Area, Population, and Literates in India


(2001 Census)
State/District

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

4343645 2219539 2124106 --

Kancheepuram

4433

Tiruvallur

--

4343645 2219539 2124106

2877468 1451242 1420226 1342502 676095

666407

1534966 781147

753919

3424

2754756 1397407 1357349 1244674 629052

625622

1500082 768355

731727

Cuddalore

3678

2285395 1150908 1134487 1531034 771786

759248

754361

379122

375239

Villupuram

7217

2960373 1492442 1467931 2533456 1277415 1256041 426917

215027

211890

Vellore

6077

3477317 1741083 1736234 2169319 1088090 1081229 1307998 652993

655005

Tiruvannamalai

6191

2186125 1095859 1090266 1785364 895738

889626

400761

200121

200640

Salem

5220

3016346 1563633 1452713 1626162 852453

773709

1390184 711180

679004

Namakkal

3429

1493462 759551

465865

545232

277186

268046

Dharmapuri

9622

2856300 1473597 1382703 2400354 1240122 1160232 455946

233475

222471

Erode

8209

2581500 1309278 1272222 1387537 705436

682101

1193963 603842

590121

Coimbatore

7469

4271856 2176031 2095825 1451653 734699

716954

2820203 1441332 1378871

The Nilgiris

2549

762141

151874

155658

454609

226477

228132

Tiruchirapalli

11096

2418366 1208534 1209832 1279204 638617

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

2216138 1096638 1119500 1467577 726493

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

2578201 1303363 1274838 1134025 573036

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

2723988 1333939 1390049 1415742 388797

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

Appendix D Economics and Statistics of Tamil Nadu

Government of Tamil Nadu


Department of Economics and Statistics
Statistical Hand Book 2004
SELECT ECONOMIC INDICATORS
A AREA AND POPULATION 2001
1. Density of Population per sq.km.

480

2. Literacy Rate 2001

73.5

3. Percentage of Workers to total Population

44.78

4. Percentage of Scheduled Castes to total Population

19.00

5. Percentage of Scheduled Tribes to total Population

1.04

6. Sex Ratio (Female per 1000 Males)

987

7.

Percentage of Literate Scheduled Castes to total Scheduled Castes


Population

39.47

8.

Percentage of Literate Scheduled Tribes to total Scheduled Tribes


Population

23.35

9. Birth-rate per thousand 2002

18.5

10. Death-rate per thousand 2002

7.7

11. Infant Mortality Rate 2002 (Per 000 Live Births)

44

B STATE INCOME 2003- 04 (A.E.)


1. Per Capita Income at Current Prices (Rs.)
2.

Net State domestic product at current prices


(Rs. in Lakhs)

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

c. High School stage

392

d. Higher Secondary stage

1096

2. Teacher-Pupil ratio
a. Primary Schools

35

b. Middle Schools

37

c. High Schools

28

d. Higher Secondary Schools

32

3. Number of Primary Schools per lakh of population 2001Census Population 51


46

4. Number of Middle Schools per lakh of population

11

5. Number of High Schools per lakh of Population

6. Number of Higher Secondary Schools per lakh of population

7. Drop Out Rate in Tamil Nadu (in Percentage)


1.
2.
3.
4.

Upto Primary stage


Upto Middle stage
Upto High School stage
Upto Higher Sec. Stage

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

I ROAD AND TRANSPORT 2002-03


1. Surfaced road length per hundred sq.km. of area (Kms.)

105

2. Surfaced road length per 10,000 of population (2001 Population)

27

3.

Number of Motor Vehicles per 10,000 of population 2002-03 (Based on


2001 Population)

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

b. Industry and Minerals

4.22

c. Irrigation Power and Flood Control

26.79

d. Transport and Communications

8.76

e. Social and Community Services

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

Appendix E Rank Order- Population

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

Source: CIA-The World Factbook-India: Rank Order-Population. Available:


http://www.cia.gov/cia/publications/factbook/rankorder/2119rank.html

Appendix F Tamil Nadu Location Map

48

Source: Maps of India: Tamil Nadu Location Map, 1997. Available:


http://www.mapsofindia.com/maps/tamilnadu/tamilnadulocation.htm

Appendix G Total Workers as a Percentage of Total Population in Tamil Nadu,


2001

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

Source: Census of India 2001-Tamil Nadu-Chapter 2: Workers and Non-workers, 2001.


Available: http://gisd.tn.nic.in/census-paper3/Chapters/Chapter2.htm

Appendix H Name card of Contacted Person in The High Commission of India

50

Appendix I Company Brochure

51

Appendix J Map of Chennai

52

Appendix K Project Proposal

UNIVERSITY OF TECHNOLOGY, SYDNEY


SCHOOL OF MARKETING
24220 INTERNATIONAL MARKETING
PROJECT PROPOSAL
Company Name
The Easy UC Way Seminars
Office Suite: 19-9-2
Level 9 UOA Centre
19, Jalan Pinang
50450 K. Lumpur
Product or Service Description
The Easy UC Way Seminars offers personal development seminars for the
general public. These seminars all are based on a similar concept but vary to suit
the different the companys different target market.
Seminars organized by The Easy UC Way Seminars:
a)
b)
c)
d)
e)

Millionaire Entrepreneur
Changing Behavior
5 Year Dream Achievement Program
The EZUC Way for Teens
The Easy UC Way Success Without Effort and Discipline

These seminars are based on the concept of unconscious competence. It is


targeted for individuals between the ages of 30 and 55, working professional who
are middle to high income earners.
These seminars are meant to help individuals change their life for the better.
Each seminar offers a different way of assisting individuals with their challenges.
The Easy UC Way Seminars continuously modifies and introduces new personal
development programs to better suit their target markets needs and wants.
Export Country
The Easy UC Way Seminars will be exported to India. A specific program will be
designed to suit the Indian markets needs and wants.
53

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

Appendix L Progress Report

PROGRESS REPORT
3.0 Situation Analysis
3.1 Business Environment

Location of Tamil Nadu in India


3.1.1 Economic Conditions in Tamil Nadu
Tamil Nadu is one of the most industrialized among the Indian states with a per
capita income of 6,205. Agriculture is the prime occupation of three-quarters of the rural
population of Tamil Nadu. However, 34% of the state's 55 million population resides in
urban areas and a lot of them work for multinationals firms. The number of professionals
is increasing with the advent of Tamil Nadu as an attractive location for foreign
investments.
3.1.2 Social and Cultural Factors
Tamil, the official state language, is spoken by most of the people. Telugu is
spoken by almost 10 percent of the population; Kannada, Urdu, and Malayalam are
55

spoken by much smaller percentages. English is spoken as a subsidiary language. The


main religions in the state are Hinduism, Christianity, Islam and Jainism. Hindus
constitute an overwhelming majority of the population.
3.1.3 Technological Factors
Tamil Nadu has the highest rural telephone connectivity in the country with nearly
86% of all its villages in Tamil Nadu covered. Six agencies have already been permitted
on a non-exclusive basis to create high bandwidth optic fibre cable networks that will
cover every single district in the State. This makes Internet access possible in every
corner of the State.
3.1.4 Political or Legal Factors
A business presence in India may be established by a foreign entity either through
a liaison office, a branch office, a company or a partnership. Generally, companies
incorporated in India and branches of foreign corporations are regulated by The
Companies Act, 1956 to oversee the functioning of companies in India. Foreign
companies are required to comply with certain provisions of the Act such as registering
themselves with The Registrar of Companies (ROC), New Delhi within 30 days of
establishing a place of business in India. The business registration procedures to form a
company in Tamil Nadu, India are such as7:
1. Obtaining approval for the proposed name of the company from ROC
2. Drawing up the Memorandum of Association
3. Drawing up the Articles of Association
4. Getting the appropriate persons to subscribe to the Memorandum ( a minimum of
2 for a private company)
5. Payment of Registration Fee to the ROC
6. Receipt of Certificate of Incorporation
7. Obtain a certificate of commencement of business from the ROC
Furthermore, a new policy has been introduced in the Exim Policy effective from
April 1, 2000 for setting up of Special Economic Zones (SEZ) in the country with a view
to provide an internationally competitive and hassle free environment for exports and
imports. Foreign companies can gain incentives from this policy; such as no license
7

Tamil Nadu Industrial Development Corporation Ltd.: Formation of Companies, 2004


Available: http://www.tidco.com/india_policies/company_formation/formation_of_companies.asp

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

Banking In Tamil Nadu, India


Tamil Nadus has three bank account choices for non residents. Non residents can choose NRE
Accounts (Non-Resident Rupee Accounts). NRE accounts are rupee denominated accounts in the
form of savings, current, recurring or fixed deposits accounts. Joint operations with other NRIs /
PIOs are allowed. Power of attorney can also be granted to residents. Non-residents can also
choose NRO Accounts (Ordinary Non-Resident Rupee Accounts) which are Rupee denominated
non-repatriable accounts which can be open jointly with residents of India. Finally non-residents
can also open FCNR B Account [Foreign Currency Non-Resident Accounts (Banks)] which
allows non-residents to open an account in permitted currencies.
Visa Requirements
Non-residents wishing to enter India must obtain a visa. Business visas are available to
individuals who wish to carry any trade or business in India but do not cover individuals looking
for employment or for those providing remunerative professional services. Non-residents who
enter India on business can leave India only after getting a No Objection Certificate from tax
authorities.

3.2 Market Analysis


3.2.1 Market Definition
Tamil Nadu is located on the southeast coast of India and the capital city is called
Chennai. Tamil Nadu is one of the most potential markets for EZUC as it is a growing
technology hub of India at present. It is also a major manufacturing centre in India and
has a diversified economic base with the recent growth being driven primarily by the
auto, IT outsourcing and services industries10. Being the fourth largest economy in the
world, as shown in the recent studies of Gross Domestic Product (GDP) ranking11, it
proves directly or indirectly a larger employment opportunity has been created and thus
approaching the Tamil Nadu market would be most probable and most likely to prosper.
Formerly in Malaysia, Dr. Murugas client list comprises of a diverse group of
associations

and

organizations

including

numerous

10

Wikipedia Tamil Nadu: Economy, January 2001


Available : http://en.wikipedia.org/wiki/Tamil_Nadu#Economy

11

Wikipedia - Economy of India, January 2001


Available: http://en.wikipedia.org/wiki/Economy_of_India

Corporate

Organizations,

58

Management Organizations, Sales Organization, Insurance agencies, Voluntary


Organizations, Colleges and Schools. However, EZUC may or may not possibly focus on
the potential target markets such as working professionals, business owners, housewives,
teenagers, college students or retirees in Tamil Nadu.
There are approximately four other dominating foreign personal development
seminars companies such as Anthony Robbins and Associates, Dale Carnegie Training,
Franklin Covey Co. and The Rich Dad Company (collaborative effort of Robert and Kim
Kiyosaki and Sharon Lechter) to name a few. These companies are also catering to the
same target market as The Easy UC Way Seminars. The presence of these companies
proves that the Indian market has the preference for attending seminars in seeking ways
to change their life for the better and this supports the fact that the probability of
acceptance and recognition of The Easy UC Way Seminars in India will be much higher.
In contrast, it may also indicate greater levels of competition for EZUC in the market.
3.2.2 Market Size and Outlook
Table 1 - Statistics of the Indian market (as of August 2005)
Population
Population growth rate
Age Structure

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

Definition: age 15 and over can read and write


Total population: 59.5%
Male: 70.2%

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

CIA-The World Factbook-India: Rank order-Population


Available: http://www.cia.gov/cia/publications/factbook/rankorder/2119rank.html

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

Pricing Practice as an Effect or Tariffs


Further market research will have to be done to gather information regarding the
effect of tariffs on service companies.
3.2.4 Target Market Behaviour
Market Segmentation and Potential Target Market
Market segmentation is the process of classifying customers into groups with
different needs, characteristics and behaviour who might require separate products or
marketing mixes13. EZUCs potential target market can be segmented by looking at
demographic, geographic and behavioural variables.
Demographic segmentation consists of dividing the market into groups based on
variables such as age, sex, family size, income, occupation and education 14. For instance,
The Easy UC Way Seminars can be design and customized to meet their target markets
based on the middle to higher income earners. With the emergence of more working
female population, EZUC may also aim to reach the corporate ladies. To add on, EZUC
may segment their target market in terms of occupation, where programs and seminars
are designed for working professionals, salespeople, students or other professionals in the
labour force.
Geographic segmentation calls for dividing the market into different geographical
units such as nations, regions, states, cities or neighbourhoods15. In this instance, EZUC
has decided to export its services to the Southern India or more precisely known Tamil
Nadu due to the rapid economy growth which will facilitate their operation in the
metropolitan area.
EZUC can also segment its market in terms of behavioural segmentation where they
can divide their customers into groups based on the benefits sought from The Easy UC
13

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.

3.3 Competitor Analysis


3.3.1 Competitive Environment
The training industry is an extremely competitive industry. Low barriers to entry
have allowed almost anyone with a degree to participate in this growing market. The
training industry consists of various genres of seminars. The major genres are personal
development seminars, technical development seminars, team building seminars and
16

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

17

Government of Tamil Nadu-Department of Economics and Statistics: State Income, 2001


Available: http://www.tn.gov.in/deptst/Ecoindicator.htm

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

Personal Development Leadership, http://www.pdl.com.my/reasons.html

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

Personal Development Leadership, http://www.pdl.com.my/reasons.html


Adam Khoo Learning Technology Group, 2003, http://akltg.com/programs.php

64

Robert Kiyosaki markets his seminars in India but holds his seminars in the United
States.

3.4 Organization Assets and Skills


3.4.1 Company Profile and Financial Capability
The Easy UC Way Seminars was founded in 2001 by Dr. Muruga. The company
started as by only organizing one genre of public seminars known as The EZUC. After 4
years of operations the company has diversifies into other genres of personal
development seminars such as Emotional Intelligence, Organizational Behavior and Tem
Building. EZUC has also entered the corporate market by organizing customized in house
seminars for big corporations such as MCIS Zurich Insurance, RHB Bank, Maybank and
other Malaysian based companies. The EZUC has also explored the government sector by
organizing seminars for various government departments.
The Easy UC Way Seminars financial capabilities are very limited. At the same
time the company has not committed to loans and financial support of any kind. The
funding and operations of this company is solely from its founder Dr. Muruga. The
company makes an estimated profit of RM 3,000 for every public seminar organized and
RM 4,000 for in house corporate seminars.
3.4.2 Stage of Internalization
The Easy UC Way Seminars currently has very limited exposure to international
markets. In the past the companys services have been contracted by the United Nations
(UN). These contracts were conducted in the North East of Sri Lanka where the UN and
many other international institutions are helping in the nations recovery from war.
However market research activities are in progress to expand The EZUC to Tamil Nadu,
India. The company has forged relationships and is in the negotiations process to enter
the Indian market.
3.4.3 Experience in International Markets
The UN contract provided the companys trainer with international exposure and
experience in conducting seminars in a foreign culture. The companys experience in the
Sri Lankan market is considered as an asset in this report because of the similarities it has
with the Indian market. Sri Lanka is historically a branch of the Indian nation. There exist
65

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

3.4.6 Profit Margins


EZUC enjoys products with very high profit margins. For each sale EZUC
potentially makes a profit of RM 1000.00 depending on price structure implemented for
the particular product. This high profit margin has been a key factor for the survival of
the company during its early stages of growth. High profit margins were able to sustain
the high cost of advertising and marketing activities that were done to raise awareness.
3.4.7 Company Business Philosophy and Culture
The EZUC is based on the philosophy of creating value for customers. The
company strongly believes in giving its customers more than what they paid for. For
instance, the company organizes monthly follow up sessions for free so that their
customers can refresh themselves on what they learnt during the seminar they attended.
The company trainers and facilitators are on 24 hours standby to advice and help past
graduates with their problems and challenges. These after sales service are implemented
to provide customers with more value for their money.
However, the most impressive value for money that customers get is a money
back guarantee. If customers do not witness changes in their lives after practicing the
techniques taught during the seminar they will refunded their money. The company takes
pride in showing real life results and always operates on the basis of honesty and
reliability.
3.4.8 Organizational Chart
The organization chart of EZUC is as below:
C.E.O / Principal Consultant
Dr. Muruga

Marketing & Operations Manager


Navin Muruga

IT & Marketing Executive


Lee Chee Wai

Corporate Account Manager


Christina Lee
67

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.

4.0 SWOT Analysis


4.1 Strengths
Trainer able to converse in Tamil
This will make communication between trainer and participants much smoother as Tamil
is one of the national languages of India.
India is an IT based nation.
Indias strong IT facilities ease communication and business dealings. EZUC can
capitalize on Indias IT facilities to reduce the cost of marketing.
Malaysia is Indias largest trade partner.
Malaysia is one Indias largest trade partners. Many bilateral agreements have been
signed and a strong relationship has been built between the two nations.
Prior experience in Sri Lanka
The trainers prior experience in Sri Lanka (which has very similar cultural
characteristics to India) provides experience and will help ease business dealings.
Ability to design new programs to suit the intended market segment
Dr. M is able to design new programs which can be specialized and customized for a
particular target market.
Published book adds to accreditation.
Dr. Murugas bestselling book adds authority and credibility to the company.
Existing contacts in India
Dr. Murugas prior visits to India have allowed him to build relationships with individuals
in India. These individuals are prepared to assist in his companys international
expansions.
68

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.

5.0 Evaluation of Alternative Marketing Strategies


5.1 Alternative Market Entry Strategies:
5.1.1 Joint Venture
Joint venture refers to co-operation on a project or business between two or more
corporate bodies. The EZUC may cooperate with various training company in India
providing personal development training where both parties agree to create a new entity
together by both contributing equity, and they then share in the revenues, expenses, and
control of the enterprise. For instance, EZUC may contribute to the management of
seminars and training experties whilst the local partner in Tamil Nadu may provides

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

The McGraw-Hill Companies International Business: Student Resources-Glossary-Licensing, 1998


Available: http://www.mhhe.com/business/management/hill/student/olc/gl_l.html

74

5.1.3 Direct Exporting


One method of market entry into India is through direct exporting. The company
can source for multiple agents in the Tamil Nadu market to market and sell its seminars
while the company maintains operations from Malaysia. These agents will be responsible
for promoting and selling seats for the seminars that will be organized for EZUC in Tamil
Nadu. These agents will be given different geographical coverage for marketing. They
will be provided with marketing content and will receive advice from the company on
how to market the seminars. These foreign agents will be compensated based on
commission schemes. For every sale they make they will be given a percentage of the
selling price.
Advantages
By employing a direct exporting strategy to enter the Indian market, the company
will benefit from lower marketing cost. This is because the major cost in organizing a
seminar lies in marketing. With direct exporting local agents in Tamil Nadu will absorb
the marketing cost. This cost will be covered by commission agreements between the
company and the agents in Tamil Nadu. With this strategy the company does not have to
worry about high initial costs for marketing and raising awareness.
Disadvantages
The disadvantage of direct exporting is that the company will be committed to
continuous assistance to agents in Tamil Nadu. This will mean extra resources to provide
assistance and potentially extra cost for training and product knowledge. There is also a
chance that agents will misrepresent the company and these problems will take time to be
solved. The use of commission schemes will mean that the performance of these agents
will depend on how attractive the commission schemes are. If another training provider
has an agreement with these agents for a more attractive commission scheme these agents
will focus on selling the other training providers services instead of The Easy UC Way
Seminars. Furthermore, the expansion of the business to Tamil Nadu will heavily depend
on the relationship of the agents and the business. This will mean that sour relationships
could lead to a total failure in international exposure for the business.

75

5.2 Alternative Target Market, Positioning and Marketing Mix


Strategies
5.2.1 Alternative Target Market:
Target

Option 1:

Option 2:

Option 3:

market
Gender

both male and female

both male and female

both male and female

Age

ranging from age 25-40

ranging from age 30-50

ranging from age 20-25

Region

Tamil Nadu

Tamil Nadu

Tamil Nadu

Education

high school graduated,

high school graduated,

high school graduated,

post-graduates,

post-graduates,

performing tertiary

professionals
Occupation Working Professionals

professionals
Business Owners

level
College Students

Lifestyle

career minded and

concern about financial

concern about future

concern of wealth

management,

working environment

generation and health

entrepreneurship and

conscious

health conscious

People who earn above

People who earn above

Rely or depends on

Rp. 30,000 per month

Rp. 50,000 per month

parents

middle to upper class

upper class

middle class

Income

Social class

5.2.2 Alternative Positioning and Marketing Entry Strategies:


Option 1: Working Professionals
The EZUC will position its service as a high quality service at a higher price targeting
middle to higher income earners. (Table 7A)
Product/Service The Easy UC Way Seminar cover 3 areas of professionals life: wealth
Title
Place

generation, health and relationships.


Will be held in conference hall or meeting room in hotels located in the
city facilitating customers to travel conveniently as well as reachable by

Promotion

public transportation.
- Offer one month early bird discount
76

Price

- Corporate rates and group rates


Moderate to premium price cater for middle to higher income brackets

Option 2: Business Owners


The EZUC will position its service as a high quality service at a higher price targeting
middle to higher income earners. (Table 7A)
Product/Service Millionaire Entrepreneur a reality business stimulation game based on
Title
Place

the concepts of accelerated learning techniques.


Will be held in conference hall or meeting room in hotels located in the
city facilitating customers to travel conveniently as well as reachable by

Promotion
Price

public transportation.
- Offer early bird discount
Moderate to premium price cater for middle to higher income brackets

Option 3: College Students


The EZUC will position its service as an exceptionally affordable and reasonably priced
service targeting students. (Table 7B)
Product/Service The Easy UC Way for Grads Seminar - prepare college students for the
Title
Place

working environment, making career choices and planning their future.


Will be held in seminar based resort and pre-arranged transportation

Promotion

such as shuttle bus services available.


- Offer student discount and group discount

Price

- Instalment payments available


Exceptionally affordable and reasonably priced

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

5.2.3 Preferred Strategy


Summary
After careful evaluation of each form of market entry, we have come to the
conclusion that EZUC will benefit the most by penetrating the Indian market via a joint
venture. The main target market would be working professionals and EZUC will position
itself as a one-stop solution for all problems inclusive of health, relationships, financial
management and career towards the working professionals. Moreover, EZUC will also
position itself as being affordable by targeting mainly those middle to higher income
earners. The Easy UC Way Seminars will be held in a conference hall in hotels within the
city centres in Tamil Nadu making it convenient to those attending. The main form of
promotion entitled to those attending this seminar would be a 10% early bird discount.

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

Appendix A Rank order-Population


Date of

Rank

Country

Population

World

6,446,131,400

July 2005 est.

China

1,306,313,812

July 2005 est.

India

1,080,264,388

July 2005 est.

European Union

456,953,258

July 2005 est.

United States

295,734,134

July 2005 est.

Indonesia

241,973,879

July 2005 est.

Brazil

186,112,794

July 2005 est.

Pakistan

162,419,946

July 2005 est.

Bangladesh

144,319,628

July 2005 est.

10

Russia

143,420,309

July 2005 est.

11

Nigeria

128,765,768

July 2005 est.

12

Japan

127,417,244

July 2005 est.

13

Mexico

106,202,903

July 2005 est.

14

Philippines

87,857,473

July 2005 est.

15

Vietnam

83,535,576

July 2005 est.

16

Germany

82,431,390

July 2005 est.

17

Egypt

77,505,756

July 2005 est.

18

Ethiopia

73,053,286

July 2005 est.

19

Turkey

69,660,559

July 2005 est.

20

Iran

68,017,860

July 2005 est.

Information

79

21

Thailand

64,185,502

July 2005 est.

22

Congo, Democratic Republic of the

60,764,490

July 2005 est.

23

France

60,656,178

July 2005 est.

24

United Kingdom

60,441,457

July 2005 est.

25

Italy

58,103,033

July 2005 est.

26

Korea, South

48,640,671

July 2005 est.

27

Ukraine

46,996,765

July 2005 est.

28

Burma

46,996,558

July 2005 est.

29

South Africa

44,344,136

July 2005 est.

30

Colombia

42,954,279

July 2005 est.

Sources: CIA-The World Factbook-India: Rank order-Population


Appendix B - Total workers as a percentage of total population, 2001
Total

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.

Fletcher, R., Brown, L. (2002). International Marketing: An Asia-Pacific


Perspective 2nd edition. Prentice Hall Australia

Websites:
Wikipedia - Economy of India, January 2001
Available: http://en.wikipedia.org/wiki/Economy_of_India

Wikipedia India: Demographics


Available: http://en.wikipedia.org/wiki/India#Demographics

Wikipedia Strategic Alliance


Available: http://en.wikipedia.org/wiki/Strategic_alliance

CIA-The World Factbook-India: Rank Order-Population


Available: http://www.cia.gov/cia/publications/factbook/rankorder/2119rank.html

CIA The World Factbook, Aug 2005, Economic Overview: India


Available: http://www.cia.gov/cia/publications/factbook/geos/in.html#Econ
81

Maps of India: Tamil Nadu Location Map, 1997


Available: http://www.mapsofindia.com/maps/tamilnadu/tamilnadulocation.htm

Robbins Research International, 2005


Available: http://www.anthonyrobbins.com/Home/Home.aspx

Census of India 2001-Tamil Nadu-Chapter 2: Workers and Non-workers, 2001


Available: http://gisd.tn.nic.in/census-paper3/Chapters/Chapter2.htm

Census of India 2001-Tamil Nadu: 2001 Census Provisional Figures-Table 2,2001


Available: http://gisd.tn.nic.in/census-paper3/tables/table2/Table-II.htm

Maps of India: Situations Responsible For Job Outsourcing To India, 1998


Available: http://www.mapsofindia.com/outsourcing-to-india/reasons-foroutsourcing.html

India: Data Protection Update


Available: http://www.legaleagleus.com/wst_page7.html

Appendix M - Record of Contacts and Activities


Date
01/08/05

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

1. Company name: The


Easy UC Way Seminars
1. India market
2. Dr.Muruga
3. Navin, nominated as
co-ordinator

Budget
Hours

Actual
Hours

1 hour

1.5
hours

1 hours

1.5
hours

All works was distributed 1.5


between group members hours

1.5
hour

1. Should discuss further


2. Distributed the work

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. Some parts are too


lengthy and irrelevant

1.5
hours

1.5
hours

1. Should change some


details
2. Work out the format

1 hour

1.5
hours

All completed

2 hours

2
hours

All have a brief summary


of each part

1 hours

1 hour

All works were


distributed among group
members

3 hours

2.5
hours

Some part of the SWOT


and the marketing
strategies should be
modified

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

Obtained more detailed


information regarding
business opportunities in
India
Allocation of the work

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

1. Little editing needed to 1.5


be done
hours
2. Allocation of the work

2
hours

1. Certain parts need to


be modified

1 hour

1 hour

1. Most of the parts are


completed; just have
minor editing to be done.
2. All have a rough idea
on the report format
Final report is finalised
by all group members
and are ready to be
compiled.

2.5
hours

2.5
hours

2.5
hours

2.5
hours

84

85

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