international market research

MKT 360 – International Marketing Plan Outline

Comments Sheet

(comments are in bold)

(Whereas parts I and II were general in nature, parts III and IV relate to the specific target market that you are planning to penetrate and the product that you are planning to introduce)

III. Market Audit and Competitive Analysis

I. Introduction

II. The product. (In this section, you need to place yourselves in the shoes of your intended customers, and discuss how do you think they will perceive the product you are going to introduce, along these 5 characteristics. For a description of the characteristics, please read “Diffusion of Innovations” which starts on page 369 of your textbook.)(After that analysis, then you need to discuss if you foresee any difficulties in the acceptance of the product by your intended market.)

A. Evaluate the product as an innovation as it is perceived by the intended market.

1. Relative advantage

2. Compatibility

3. Complexity

4. Trialability

5. Observability

B. Major problems and resistances to product acceptance based on the preceding evaluation

III. The market. (Some of this information may be a repeat of previous sections from parts I and II. However, here you need to be more specific to the target market and class of product you are analyzing.)

A. Describe the market(s) in which the product is to be sold.

1. Geographical region(s)

2. Forms of transportation and communication available in that (those) region(s)

3. Consumer buying habits

a. Product-use patterns (how do consumers in your target market use the product? Do they use it frequently, or not at all?)

b. Product feature preferences (what features do your intended customers prefer in this class of product? – this is important because you should strongly consider adapting your product to include those features)

c. Shopping habits (how do your intended customers usually shop for this kind of product?)

4. Distribution of the product (again, this is now information specific to your product class)

a. Typical retail outlets

b. Product sales by other middlemen (is this class of product being sold in other than retail outlets – like the Internet, for example?)

5. Advertising and promotion (what is presently being used in your target market – by other competitors?)

a. Advertising media usually used to reach your target market(s)

b. Sales promotions customarily used (sampling, coupons, etc.)

6. Pricing strategy (what is presently being used by other competitors?)

a. Customary markups

b. Types of discounts available

B. Compare and contrast your product and the competition’s product(s)

1. Competitor’s product(s)

a. Brand name

b. Features

c. Package

2. Competitor’s prices

3. Competitor’s promotion and advertising methods

4. Competitor’s distribution channels

C. Market size.

1. Estimated industry sales for the planning year (this is your estimate of what are the total sales for all the competitors)

2. Estimated sales for your company for the planning year (this is your estimate of what you think you will sell in the first year)

D. Government participation in the marketplace.

1. Agencies that can help you (are there any local government agencies that normally assist foreign marketers such as yourself?)

2. Regulations you must follow (as a foreign marketer)

IV. Executive summary

V. Sources of information (bibliography)

VI. Appendices (if needed)

IV. Preliminary Marketing Plan

I. The marketing plan. (This is the explanation of how you are planning to actually deliver the satisfactions of the needs of your target market – with the right product/service, delivered at the right place, sold at the right price, and communicated through the channels that your customers use the most.)

A. Marketing objectives

1. Target market(s) (specific description of the market)

2. Expected sales first year (this is the same number you quoted on section C2 of part III above)

3. Profit expectations first year

4. Market penetration and coverage (how much of the market do you plan to penetrate? In other words, what percent of the total market sales do you expect to capture- 10 percent, 20 percent, 50 percent, 100 percent, etc.?)

B. Product adaptation, or modification- Using the product component model as your guide, indicate how your product can be adapted for the market. ( Look at Exhibit 13-1 on page 373 of your textbook for a description of the Product Component Model) (How are you going to change – or not to change – the different parts of your product to adapt it to your target market?)

1. Core component

2. Packaging component

3. Support services component

C. Promotion mix (How are you actually going to communicate the benefits of your product and to persuade your customers to buy it?) (Which methods are you going to use? How are you going to use them?)

1. Advertising.

a. Objectives

b. Media mix

c. Message

d. Costs

2. Sales promotions.

a. Objectives

b. Coupons

c. Premiums

d. Costs

3. Personal selling.

4. Other promotional methods.

D. Distribution: From origin to destination. (In this section, you are required to assume that you are going to ship by ocean freight a 40-foot container of your product from Miami to the best port of entry to your target country. If your product is a service, assume that you are sending a 40-foot container of machinery used to deliver the service. Assume that the container weighs approximately 40,000 pounds.) (I have listed in Blackboard several websites where you can obtain this pricing – see “Ocean Freight Calculators”)

1. Port selection.

a. Origin port (Miami)

b. Destination port (your selected port of entry overseas)

2. Mode selection: Advantages/disadvantages of each mode. (Here you are supposed to give us general advantages/disadvantages of each mode of transportation)

a. Railroads

b. Air carriers

c. Ocean carriers

d. Motor carriers

3. Packing.

a. Marking and labeling regulations (this can be obtained from the Exporter’s Encyclopedia for your target country)

b. Containerization

c. Costs (how much is it going to cost to pack the container)

4. Documentation required. (Define each of these terms and indicate which are required for shipments to your target country, and in what quantity – say, and original and 10 copies) (The best place to find this information is in the book “Exporters Encyclopedia”)

a. Bill of lading

b. Dock receipt

c. Air bill

d. Commercial invoice

e. Pro forma invoice

f. Shipper’s export declaration

g. Statement of origin

h. Special documentation

5. Insurance claims (Find out what is the cost of ocean freight insurance for your shipment)

6. Freight forwarder. Advantages/disadvantages of hiring one.

E. Channels of distribution (micro analysis) (this section pertains to how you are going to distribute your product in the target market)

1. Retailers. (are you going to use retailers to distribute your product?)

a. Type and number of retail stores

b. Retail markups for products in each type of retail store

c. Methods of operation for each type (cash/credit).

d. Scale of operation for each type (small/large)

2. Wholesale middlemen. (are you going to use wholesalers?)

a. Type and number of wholesale middlemen

b. Markup for class of products by each type

c. Methods of operation for each type (cash/credit)

d. Scale of operation (small/large).

3. Import/export agents. (are you going to use these?)

4. Warehousing (where are you going to store your inventory?)

a. Type

b. Location

F. Price determination. (For your actual shipment)

1. Cost of the shipment of goods

2. Transportation costs

3. Handling expenses

a. Pier charges

b. Wharfage fees

c. Loading and unloading charges

4. Insurance costs.

5. Customs duties

6. Import taxes and value-added tax.

7. Wholesale and retail markups and discounts

8. Company’s gross margins (percent)

9. Retail price (what is the price you intend to ask for your product?)

G. Terms of sale (define each of these terms of payment required of the importer of the goods shipped and indicate which one you are going to use and why)

1. Ex works, fob, fas, c&f, cif

2. Advantages/disadvantages of each

H. Methods of payment (from the final consumer) (define each and indicate which one you are going to use and why)

1. Cash in advance

2. Open accounts

3. Consignment sales

4. Sight, time, or date drafts

5. Letters of credit

II. Pro forma financial statements and budgets. (OMIT THIS SECTION)

III. Resource requirements (what resources do you think you are going to need to start this business?)

A. Finances (how much money are you going to need?)

B. Personnel (human resources you are going to need?)

C. Production capacity (OMIT THIS SECTION)

IV. Executive summary

V. Sources of information (bibliography)

VI. Appendices (if needed)