GLOBAL MARKETING (MKTG 33273)

Global Market Entry Plan – Group Project

Context
You and your colleagues have just started working in the Marketing department of your
company. The Director of Marketing has pulled you together to explain that she has been
challenged to expand to a new country. She needs a compelling document that outlines an
entry plan for your company/product in the market that you have chosen. She has told you that
if this is good, you will be able to present it to the executive team and it will be a stepping stone
to a promotion and salary increase.

Overview:
This project is the major outcome of this course. The overall intent of the project is that you
learn how to apply course concepts to complete a global marketing plan. You should undertake
a marketing opportunity analysis in a real industry in a country you have chosen. In this process
you should be conducting appropriate research to make a comprehensive assessment of the
company, the country, and the industry in order to design a marketing plan to enter that market.

 The project will be undertaken in groups of 4 students (ideally)

 The entire project comprises 40% of your final grade
o Phase 1: Country/Company Proposal (15%)
o Phase 2: International Marketing Plan (15%)
o Presentation (10%)
 You will complete a group contract outlining your contact information, choice of
company/country and group expectations. You are responsible for having a discussion
with your team, to circumvent any potential issues, such as unequal work load. You will
complete the Peer Evaluation form and submit it with your final report.
o Group contract and Peer evaluation forms are available in SLATE
 The entire document should be approximately 20-25 pages without
attachments/appendices
 Use 11 font (Times New Roman or Arial) and 1.5 spacing

Target Country selection:

 Your target country cannot be the USA or the country any members of your group were
born in.
 The company selected cannot have operations in the target country
Company selection:
 You must choose a North American company/product/service
 Ideally choose a company that is consumer-oriented (i.e. not B2B) and has grown to the
extent that they are ready to expand
 Choose a public company to ensure that there will be enough information available to
develop financials and objectives for the company’s expansion

1
 PHASE I: Country/Company Proposal

This section should be a minimum of 10 pages in length, 1.5 spacing, 11 font.

1. Company Analysis:

 Briefly detail how the company is structured:

o Publicly or privately owned
o When was the company established?
o Number of employees

 Fully describe the company’s products/services in terms of:

o Breadth of product range (i.e. wide or narrow)
o Product features
o Product benefits

 Performance in home country (Canada or United States)

 What are the company’s operating revenues for the past three years in the home
country?
o Approximate financial contribution of major product lines
o What are the financial resources of the company?
o Does it have the funds available to support an effective market entry/expansion
overseas?
 Name the 3 key reasons for success of the company in the home country
o What are its 'unique selling proposition' or 'competitive edge'?
o Are these strengths likely to be sustainable in international markets?
 Describe any international experience that the company may have.

2. Target Country Analysis:

 Demographic Environment:
o Population and growth rates;
o Urbanization vs. rural,
o Education levels, literacy rate
o Age distribution,
o Income levels and disposable income

 Social/Cultural Environment:
o Provide information on any social and culture factors that will impact on your firm's
activities/products within that country.
o What is the country's cultural and language affinity with local country?
o Attitudes (e.g. health, environmental consciousness, etc.)
o Leisure interests
o Any social trends that you may be able to take advantage of?

 Economic Environment: Provide a brief economic overview with an assessment of the

following economic indicators:
o GDP
o Current and forecasted economic growth
o Inflation rate
o Unemployment rate

2
 o Interest rates (base lending rates)
o Per capita income and disposable income level
o Areas of consumer spending
o Other relevant indicators

 Technology
o Country infrastructure supporting communication or transportation
o Recent technological developments
o Technology’s impact on product offering
o Rate of technological diffusion
o Government research spending
o Industry focus on technological effort
o New inventions and development
o Rate of technology transfer
o Life cycle and speed of technological obsolescence
o Energy use and costs
o Changes in information technology
o Internet usage and availability
o Mobile technology

 Political and legal/regulatory

o Type of government and ideology
o Political stability of the leadership
o Type of legal system
o Trade policies and laws that can help or hinder your company.
o What is the country's geographical, political and legal proximity to local country?
o Are there are specific relevant regulations related to your product with respect to
product testing, safety standards, advertising restrictions, zoning or bylaw
restrictions? Are any of the current regulations likely to change?
o What tariff and non-tariff barriers exist for imported products?
 Duty rates?
 Quotas

3. Market and Competitor Analysis:

 Market Size
o What is the size of the market? What are the total sales figures for your product
category over the past three years by value (i.e. $) and annual growth rates?
o Is the market relatively over or underdeveloped vs. the home country?
o Is the competitive environment fragmented or concentrated? What is the number
of competitors (5 versus 500)?

 Competitors
o Analyze 3 competitors in your target country in terms of product/service offered,
size of their business, and marketing strategies. Identify the critical competitive
advantage for each competitor and analyze the implications relative to your
company.
o What are their market shares?
o Assess the relative threat that your company represents to these competitors.
What will be their likely reaction to your market entry?
o What substitute products are in use and which companies supply them?

3
 4. Consumer Information:

 Customer Segments
o Define 2 potential customer segments for your product in the new country using
demographic, geographic, psychographic and behavioural variables.

 Consumer Behaviour
o You should identify any deviations of consumer behaviour or attitude (from what is
known in the home country) that can affect business. It could include such issues
as: colour and design preferences, values, attitudes and behaviour.
o Attitudes towards foreign products in this country
o Identify and rank in order of importance the key considerations affecting the
purchase decision for each customer segment and provide a brief explanation of
each criterion. These may include:
 Product features/benefits
 Uniqueness of design
 Price
 After-sales support
 Ease of use/training required
 Reliability
 Brand/corporate reputation of supplier
 Speed of supply/availability
 Level of customization
 Payment terms
 Preference for locally manufactured goods
 Personal relationships between buyer and seller
 Other

5. Implications to your launch

 Using the information included in your analysis from sections 1-4, summarize a
minimum of 10 key implications to your launch of the information gathered.

4
 PHASE 2 – International Marketing Plan

6. Market Entry Strategy:

 What market entry strategy will you use (exporting (direct or indirect), contractual
agreements such as licensing and franchising, joint venture, direct investment)? Provide
rationale for your decision.
 What has your company done in the past if they have expanded globally or within the
home country? Is there any reason to deviate from that plan?
 Are you planning on standardization or adaptation of your product/service offering?

7. Target Market:

 Based upon your analysis in Part 1 Section 4, clearly define who your target market will
be. Be specific and give your rationale for selecting this particular segment.
 Ensure that you provide an estimate of the target market size.

8. Positioning:

 Provide a concise positioning statement for how you will differentiate yourself in this new
market. Use the following format:
o For (target audience) who (what they want/why they would buy the product),
(Product Name) is a (category in which the product competes) that offers (point
of differentiation).
 Include a positioning map that reflects the top 2 drivers of sales for your product in the
target country. Include your company/product as well as, at least 3 competitors.
 How is it different than the home country’s positioning, if at all, and why or why not?

9. Marketing Objectives:

 What do you want to achieve and by when? Include a sales and a market share
objective.
 Objectives should be S-M-A-R-T. (Specific–Measurable–Action-Oriented–Realistic–
Time-Bound)

10. Marketing Mix:

Product (will differ depending on if you are launching a retail store or a packaged
good)
 Describe your product/service in some detail including any special features
 Standardization or adaptation? Explain and give rationale.
 Packaging and labeling
 Branding approach
 Sizing/colours
 Major context: Contrast to what is done in the home country if changes or no changes or
some changes – why or why not?

Price
 How will the price be determined? What pricing strategy will you use?
 Does the currency exchange rate affect your pricing?
 Price level vs. competitors

5
  Margins that will be offered to local partners such as, agents, distributors.
 Suggested retail price
 Terms of payments (cash, credit)
 Major context: Contrast to what is done in the home country if changes or no changes or
some changes – why or why not?

Place
 Where will the product be sold? Where will stores be located?
 What marketing channels will be utilized?
 Will you use a single channel or multiple channels/
 If required, identify potential partners (distributors, retailers, agents) for the company
 Major context: How will distribution differ from what is done in the home country? Why
or why not?

Promotion
 Overall communication message that is suited to the local culture
 Communication extension vs. adaptation with rationale
 Type of promotion: personal selling, direct mail, digital, advertising, publicity, event
sponsorship and others with rationale
 Media to be used (radio, television, print, social media) with rationale
 Include at least one example of promotional material you could use in this country – BE
CREATIVE!
 Major context: How will promotion differ from what is done in the home country? Why or
why not?

11. Financial Analysis:

Planning Assumptions
 List the assumptions you are making in the development of your Income Statement.
Assumptions are estimates of future operating conditions for your marketing plan in the
country you are entering – see Assumptions for Income Statements document in
SLATE.

Income Statement with 3 year forecast

 The forecasts should be presented in the form of an Income Statement for 3 years in the
country you are expanding into – see format in Assumptions for Income Statements
document in SLATE
 Forecasts should be as realistic as possible - even if this means that there may be
losses.
 You should also include a Break-Even Analysis. Reminder: Break-even quantity = Fixed
Costs/(Unit Price – Unit Variable Cost)

12. Monitoring Tools:

 How will you measure whether you are tracking to your Objectives (as you have stated in
Section 9 of this report.)

6
 Global Market Entry Plan Presentation

Context
You have completed an international marketing plan for your company and you have been
asked to present your plan to the executives of your company. You have been told that there
will be a number of presentations but only one plan will be funded. Therefore you need to be as
persuasive as possible.

OVERVIEW
 This presentation is worth 10% of your course mark.
 You will prepare a powerpoint presentation and at least two samples of promotional
material to be used to market your product/service internationally.
 You should provide a one page handout of your slides.
 Use the work you have done in Phase 1 and 2 and the theory you have learned in
class since then.

Global Expansion Presentation:

1. Promotional Material:

 Each group will prepare 2 samples of promotional materials (this could include an
advertisement, a web page, script for a television commercial, a Facebook page etc.)

2. 10 minute Plan Pitch

 10 minute (maximum) presentation
 You will use the information provided in approximately 5-10 slides, as well as your
promotional material
 Your presentation should utilize both the display AND powerpoint
 Each member is expected to present an equal portion of the presentation

Suggested Slides:
Slide 1: Product name/Company name and a brief description of your international product
expansion idea
Slide 2: Why do you think your product will be successful?
 Relevant trends in the external environment that support your expansion
 How your product/service differs from the competition in the new country
Slide 3: Market Entry Strategy and Marketing Objectives
Slide 4: Target audience and positioning
Slide 5: Product
Slide 6: Price
Slide 7: Distribution plan
Slide 8: Promotional plan
 Include samples of promotional material
Slide 9: Financial estimates – Income Statement forecast