Marketing Plan for Hi-Fi System to Australia Essay Example
Marketing Plan for Hi-Fi System to Australia Essay Example

Marketing Plan for Hi-Fi System to Australia Essay Example

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  • Pages: 11 (2841 words)
  • Published: September 14, 2017
  • Type: Case Study
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Executive Summary: This report aims to present a marketing plan and analysis for the introduction of our product into a new market, specifically Australia.

The product's name is Mini-X, and it is a Hi-Fi Audio Speaker System targeted mainly at teenagers. Its unique selling point is its exceptional sound quality and portability. This report analyzes the various factors that impact our product's entry into the market, including economic, cultural, political, and legal environments in Singapore and Australia. These factors influence decisions such as market selection, entry strategies, market research, internationalization, pricing, distribution, and promotion. The report also highlights the importance of risk assessments and potential opportunities. It examines trade barriers, economic trends, cultural elements, government policies and stability, modes of entry, data collection, branding, distribution channels, and promotional ac


tivities for assessing the market viability of our product. To explore these possibilities thoroughly, it is necessary to consider all factors with equal importance.

The product and all its strategies need to be able to adapt quickly and plan for contingencies due to the fluid global environment we operate in. The purpose of this report is to create a marketing plan for the international market of Australia. Since the product will be made in Singapore, the marketing needs to be customized for the target market and audience. The goal is to use a combination of marketing mix to understand the target market and audience, plan an approach, and capture the target market with our Hi-Fi Audio System designed for teenagers.

We have developed the world's smallest portable speakers suitable for various multimedia players, including the Apple iPod, mobile phones, portable game consoles, PCs, and laptops. These speakers weigh only 50g

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and are a revolutionary innovation. They are also the first pocket-sized speakers with built-in bass support and rechargeable batteries that provide up to 10 hours of continuous play without needing a power source. Thanks to our patented technology, these speakers can be extended upwards like an accordion. This unique expandable design creates a vacuum that simulates sub-woofer resonance, resulting in high-fidelity sound with excellent volume delivery. We affectionately call these speakers "hamburger speakers" due to this distinctive feature. With all these remarkable attributes, we have named this product Mini-X to signify its miniature size yet extreme performance.

The speaker market is currently saturated with both multinational and local brands. In addition to the dominant market leaders, there are local original equipment manufacturer (OEM) players who acquire their products from Taiwan and sell them under their own brand. As the speaker market is continuously changing, vendors provide an approximate indication of their market share. Mid-end speakers from Creative and Altec Lansing have the strongest brand recognition. However, high-end homes and large corporations primarily favor Philips, Bose, and JBL. On the other hand, Intex, iSound, and Frontech have established a strong presence in the entry-level segment where Mini-X is situated. In fact, most vendors and distributors are currently experiencing rapid revenue growth in the speaker market. Consequently, they are not only introducing new products but also positioning their various brands to meet different market demands.

In Australia, we have a goal of dominating the teenage market by offering various multimedia players that have experienced a significant increase in sales lately. According to Keegan and Green (2003), recent trends in international trade indicate a shift towards border-less markets and international

competitors taking over local ones. As a result, there have been adjustments in tariffs and non-tariff barriers traditionally used by countries like Australia to protect domestic industries from foreign competition. This move away from traditional protectionism can be attributed to factors such as capital movements driving the global economy, automation and technological advancements separating production from employment, and the global economy having a greater impact on a country's economic outcomes compared to national factors.

Capitalism and socialism are no longer in direct competition, as socialist countries are increasingly embracing market-oriented practices. Moreover, the emergence of e-commerce has diminished the importance of trade barriers. In recent times, numerous nations have reduced their trade barriers to enhance global competitiveness. Tariff barriers have been replaced by non-tariff barriers, while certain countries have completely eliminated hindrances through agreements such as Free Trade Agreements (FTA). Examples of tariff barriers include import and export duties, revenue tariffs, tariff surcharges, ad valorem duties, and value added taxes. Non-tariff barriers comprise customs and entry requirements, government intervention through subsidies, safety and licensing product prerequisites, import and export quotas, financial control measures, and performance demands.

Since the 1950s, there has been a trend towards economic integration, aiming to establish a close economic relationship among participating members. This integration involves improving the movement of goods and services, capital and labor, coordinating economic, financial and fiscal policies, and creating an infrastructure for information sharing. There are typically four stages of integration: Preferential trading arrangements, free-trade areas (FTA), customs unions, and economic unions. Preferential trading arrangements involve reducing tariffs and non-tariff barriers among member countries while maintaining barriers with non-participating countries. FTAs are a more formal version of preferential

trading agreements where members remove both tariffs and non-tariff barriers, with some exceptions for certain products or services. Customs unions share similarities with FTAs but fully eliminate barriers to trade in goods and services among themselves. Economic unions resemble customs unions but additionally strive to harmonize monetary policies, taxation, and government spending.The European Union (EU) is an example of a region where a common currency and fixed exchange rates are implemented. The cultural aspect plays a crucial role in determining the success of any product or service when expanding into a new international market.

Culture refers to the distinct values, attitudes, beliefs, and behavioral patterns that differentiate one society from another. These defining characteristics are crucial in comprehending the relationships between specific cultures and global corporate organizations. Culture is dynamic and adaptable, facilitating an understanding of the differences and similarities between the target country and international company. This understanding is vital for exploiting opportunities and enhancing the success of the product. Material Culture encompasses technology and economics, specifically the techniques used in producing material goods and the level of demand and infrastructure requirements.

The adoption and uptake of our product should be facilitated by the lack of disparity and numerous similarities between cultures. Art folklore, music, drama, and dance all contribute to the interpretation of symbolic meanings in each culture. These expressions emphasize the uniqueness of a culture and should be integrated into marketing strategies aimed at customers from that culture. This integration will enhance the attractiveness of the message and promote identification with it. The target country places importance on aesthetics in daily life, hosting various art festivals and actively supporting creativity. Their aesthetic culture has

indirectly influenced their way of life, where art is seen as a symbol of wealth and social status. Since our product emphasizes both form and functionality, this will be a crucial factor in its success.

Understanding the language of a society is crucial in comprehending its culture, as language reflects the values and beliefs of a community. Fortunately, Singapore uses English extensively, which not only facilitates communication but also enhances product promotion by eliminating concerns about translation or misinterpretation.

These establishments play a significant role in creating a sense of togetherness and solidarity among people. They encompass various aspects such as family, education, political parties, and social organizations. These entities greatly influence how individuals interact with each other, perceive each other, and strive for harmony.

This is crucial in the essential elements of marketing in another country, environment, and culture. As many of the social institutions in Australia have similar counterparts in Singapore, understanding their social network and situations will not require much effort, thus making it easier to market our product. Values and attitudes: Values refer to the principles and standards accepted by members of a society. Attitudes, resulting from a society's values, consist of thoughts, feelings, and actions. Cultural values are derived from beliefs regarding an individual's position in relation to their deity, family, and social hierarchy. Despite the potential differences in values and attitudes between Australia and Singapore, we are confident in our ability to quickly adapt to their systems, thanks to our exposure to international markets and cultures.

The government has the duty to shape and uphold the political and legal environment, formulating and implementing policies based on its nature. National governments can be categorized

into two primary types: parliamentary and absolutist. Parliamentary governments periodically engage with citizens to comprehend their desires and preferences, endeavoring to harmonize policies with the majority's wishes. This approach enables active citizen involvement in policy formation. Conversely, absolutist governments enforce policies without regard for citizen needs or opinions. Singapore and Australia exemplify parliamentary governments that share comparable laws and policies due to their historical ties with the British empire and current membership in the Commonwealth Nations.

Both countries have stable political situations and regularly hold polls and elections that are widely recognized by the global community. Political risks can be assessed through two methods: the Delphi technique and the Quantitative method.

The Delphi technique involves a group of experts on the country sharing their opinions and scoring various aspects of potential political risk. The scores are used to generate a statistical distribution of opinions, which is then utilized in the decision-making process regarding the target country's political risk.

The Quantitative method, on the other hand, entails gathering different types of data and utilizing expert interpretation to establish a mathematical relationship between a series of factors.

The country's risk factor can be predicted using the relationship. Market selection and entry decisions are influenced by two factors: country screening and market segmentation. Country screening assesses the suitability of the country for entry, taking into account factors such as political and economic situation, risk factors, and cultural assessment. This understanding is crucial in evaluating the opportunities and risks associated with product entry.

Market segmentation involves dividing the market into groups with specific characteristics, such as geographic locations, age, income, employment rates, education, and literacy rates. This helps identify the most likely group to

purchase the product. The goal of internationalizing the product is to reach a larger audience and expand the market beyond the local environment. It also aims to avoid saturation in the local market and lay the groundwork for future expansion. Three potential modes of market entry have been identified while maintaining a focus on aggressive marketing. Franchising, which involves granting the right to use intellectual property for a specified time period in exchange for a fee or royalty, could be considered. We suggest including two additional terms in the agreement: requiring the licensee to purchase a certain amount of our product each month and ensuring that effective marketing strategies are implemented to ensure success for both the licensor and licensee. Exporting, being a low-cost option with limited control and returns, could be pursued by flooding the target market with our products to generate interest in our product.

Joint Venture: A joint venture involves two or more firms creating a jointly owned entity to promote their mutual economic interests. We recommend partnering with a large electronics distributor to take advantage of their existing infrastructure, marketing, and sales expertise in order to promote our product.

International Market Research: Market research involves gathering information about the target market to analyze and use as metrics for determining and assessing the potential advantages and disadvantages of implementing international marketing strategies. This research is crucial for identifying potential challenges in marketing a new product in a different country and for making any necessary adaptations and adjustments to ensure the product's overall success. It also helps understand how potential customers fulfill their needs and desires, following Maslow's Hierarchy of Needs. Additionally, Australia is experiencing

rapid economic growth, increasing purchasing power, greater consumer awareness, and a strong logistics infrastructure.

These factors are interconnected by consumers' desire to possess the most advanced technological devices (which is considered a status symbol among other reasons). There are various sources of information that we can use for assessment, including international agencies, government agencies in the target country, consulting firms, databases, and miscellaneous sources like business libraries and brokerage houses. The evaluation of the gathered data must be tailored to the product and target market as not all information is relevant to our purpose. The methods employed for data collection would involve observation and surveys.

Observation is a valuable method for gaining insight into previously unknown issues or unfamiliar practices. It is unobtrusive and serves as a valuable complement to surveying. Surveys, on the other hand, involve aggregating the perspectives of multiple experts who may not be able to physically convene. They are asked to identify key issues related to our topic and theirs, providing us with measurable metrics and data. Data collection can be done through primary or secondary means.

Primary data includes observation and surveys, which are gathered directly. Secondary data consists of information collected through intermediaries such as international agencies and consulting firms.

In order to internationalize our products, we need to standardize them to reduce production costs and increase efficiency in both current markets and future expansion into other countries. However, we also need to be able to adapt the products to meet different requirements and needs in each country, such as varying wattages and plug shapes.

When introducing the product to the market, it is important to establish strong branding from the beginning. This will

help create awareness and differentiate our product from competitors'.

The packaging and labelling of the product require special attention for various reasons: protection, promotion, and customer convenience. There are six stages in developing a new product for the overseas market: generating ideas, screening ideas, business evaluation, product development, test marketing, and product introduction. International pricing is influenced by factors such as distributors' considerations, trade buyers' considerations, supplier marketing strategies, competitive activities, and the market environment. Pricing strategies should be set within a framework that considers firm-level factors, product specific factors, market specific factors, and environmental factors. To minimize foreign exchange risks and fluctuations between two different countries and currencies, transactional exposure, financial translation exposure, and international economic exposure should be minimized. Transfer pricing can be utilized to increase profitability by reducing the prices of products shipped from a subsidiary in a high tax country (Singapore) to a lower tax country (Australia).The process of international distribution involves the physical transfer of products from their manufacturing location to the point of sale.

There are three possible transportation modes for our product: air, sea, and land. Each mode has its own advantages and disadvantages depending on the situation. Additionally, we have three distribution channels available. These channels involve an import agent through which the product is distributed either directly to the end customer, through a retailer, or through a wholesaler who sells to a retailer. Out of these three designs, the wholesaler option is the lengthiest in terms of its process. To select the appropriate channel members, we consider several criteria such as the number of years in the same business, other product lines carried, growth and profit record, solvency,

cooperativeness, and reputation. Moreover, once selected, it is essential to evaluate the members using other sources such as sales quota and achievement rate, average inventory levels, customer delivery time, management of damaged and lost products, cooperation in promotional and training programs, and quality level of services provided to customers. Finally, there are certain transportation issues that need to be addressed when delivering our product to Australia.

While ocean shipping may experience restrictions on port capacities and delays due to various factors, air shipping is less affected by such issues. However, the high cost of air shipping, particularly with rising fuel prices and airport taxes, is a significant obstacle. Regarding international promotion, we can employ four types of promotions to raise awareness and market our product. These include advertising, which involves non-personal presentations to the public; sales promotion, which offers personalized presentations through less public forms of communication like trade shows; personal selling, which is the most intimate form of presentation relying on direct personal contacts and the use of sales and trade representatives in the target country. Taking into consideration all the facts and metrics available to us, we are confident that approaching the Australian market with calculated intentions will ensure the success of our product. The current economic, financial, cultural, and fashion trends in Australia are favorable for the easy adoption and uptake of our product.With recent successes in competing with non-homogeneous products, it has become easier to generate awareness for a new product in a new market. However, caution and careful planning are essential, as the current global situation requires the ability to adapt quickly without complacency or relying on contingencies. In addition to

the marketing strategies used to promote a new product and enter a new market, it is important to establish a robust incentives and rewards program that acknowledges the loyalty of wholesalers, retailers, and end consumers once the product gains traction in that market.

Ensuring long-term profitability for everyone involved is crucial.

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