APEEJAY SCHOOL OF MANAGEMENT

PROJECT ON

INTERNATIONAL MARKETING PLAN

NORTH AMERICA

Submitted by:- Adeetya Uberoi

Abhishek Gautam

Bhavya Ahuja

Sonali Rajpal

Udit Chauhan

TABLE OF CONTENT1. INTRODUCTION

2. ABOUT NORTH AMERICAN MARKET

3. INTERNATIONAL MARKETING PLAN

4. SCORE CARD

5. EXCEL SHEET-RESPONSES

6. GOOGLE SURVEY FORM

INTRODUCTION

Creating an effective international marketing plan requires details about each country in which

your company wants to sell products or services. Many of the sections in an international

marketing plan look similar to a local marketing plan, but that’s where the similarities end. For

instance, the objectives section might include marketing penetration goals or building brand

awareness, but they need to be tempered with a careful look at each country’s local situation.

The objectives may include reaching a certain return on investment or introducing your product

to help buyers in the new market become familiar with your brand. Your company also may

want to gain a share of the market due to increasing competition in that country from other

companies selling similar products.

Situational Analysis

Outline the opportunities your company sees in selling products and services in other countries.

Your plan should present an analysis of the culture of the country and the political and economic

conditions that indicates the country supports foreign companies. Include research about the

target market, such as the income level required for consumers to afford your offering. Examine

each country’s unemployment and inflation rates, and explain how they may affect sales.

Operations

The operations section of the marketing plan explains how your company will work with other

departments, such as manufacturing and distribution, to get your product into the hands of

buyers. Explain how you plan to handle logistics, transportation and warehousing challenges

unique to each country in getting your product to market, and outline how you will deliver the

product to retailers to sell in their shops.

Localization

Explain your promotional efforts, and indicate whether you plan to stick with one message for

your product no matter what countries you sell it in or how you plan to localize your message to

fit each country. You may need to break the message down further by using specific messages

that apply to each region within a country. Outline any new branding needed to meet the cultural

or economic expectations of each localized area in which you plan to sell your company’s

offerings.

Pricing

Your plan should provide details about your pricing structure and explain how it differs from

country to country if that’s your strategy. Note factors that influence the pricing, such as import

tariffs and shipping requirements. This section also covers how you set your prices based on

what the market can bear in that country. Describe your competition's pricing as well as how the

product value is perceived by your target market.

Tracking

Include a method for frequently reviewing your plan to identify changes in the political or

economic environment. That way, you can swiftly make adjustments to stay on track with your

company’s marketing objectives and get the product to end users with as little interference as

possible.

Doing business is increasingly global in extent today. There are several reasons for this. One  

significant reason   is   technological – because   of   improved transportation

and communication opportunities   today,   trade   is now more practical.

Increasingly rapid technology lifecycles also increases the competition among countries as to

who can produce the newest technological product. Trade between countries is beneficial

because these countries differ in their relative economic strengths-some have more   advanced

technology and some have lower costs.On the basis of these realities,  business   need to proper

international marketing plan for distribute the product through globally.

NORTH AMERICAN MARKETS

The term ‘emerging markets’ describes economies which are growing at a fast pace and working

to make their economic progress more sustainable. From an investment perspective, the stock

markets of these countries are more volatile than the mature markets of developed countries but

offer higher returns. Thereby, making them more attractive as well as riskier. Morgan Stanley

Capital Investment (MSCI) classifies countries as developed, emerging or frontier markets based

on certain criteria. To be classified as an emerging market, there should be ‘significant’ openness

to foreign ownership, ‘significant’ ease of capital inflow and outflow, ‘good and tested’

efficiency of the operational framework and ‘modest’ stability of the institutional framework.

the countries of Latin America classified as emerging markets by MSCI. The MSCI Emerging

Markets (EM) Latin America Index captures, “large and mid cap representation across 5

emerging markets (EM) countries in Latin America.” This index is one of the most trusted

measures of how these stock markets in the region are performing; however, all the constituent

countries do not have a proportional representation in the index. The country weights in the

MSCI Emerging Markets (EM) Latin America Index are: Brazil 46.6%, Mexico 36.51%, Chile

9.79%, Colombia 4.17% and Peru 2.93%. The table below compares the returns of the

cumulative MSCI Emerging Markets Index, MSCI EM Asia Index, MSCI EM Latin America

Index and MSCI World Index.

North America is a market with high penetration in most product categories. The average living

space of households is above that of other regions, which means space is available for both many

and large household appliances.

The North American market is more uniform than most markets, which has led to a relatively

high level of consolidation among producers and retailers. The three largest appliance

manufacturers in the US account for a major part of the market and around70 % of appliances

are sold via the four major retailers: Best Buy, Home Depot, Lowe’s and Sears.

The four largest manufacturers of vacuum cleaners represent more than 50% of the market.

Vacuum cleaners are sold mainly through supermarkets, discount stores and department stores,

such as Walmart, Target and Sears.

The degree of consolidation is also high among manufacturers and retailers of professional food-

service and laundry equipment.

Strengths

-experienced business units

-high growth rate

-reduced labor costs

Weaknesses

-investments in research and development

Opportunities

-venture capital

-growing economy

Threats

-growing competition and lower profitability

-price changes

-external business risks

INTERNATIONAL MARKETING PLAN

UNDERSTANDING MARKETPLACE

After years of stellar growth, sales in the North America nail color and care category have stalled, driven

by several factors including: declining participation among young women, increased reliance on the salon

and the trend-driven nature of the category. Reflective of their declining engagement in the category,

women aged 18-24 are spending less time shopping for nail products and experimenting with new trends

when compared to just one year ago, while also reporting to be doing their nails less frequently in

comparison to older female consumers.

Despite a declining interest among young women, engagement in the category remains high among

women aged 25-34, who are interested in benefits, including long-wearing products and natural claims.

As Mintel’s Nail Color and Care North America 2015 report shows, while interest in trend-driven

concepts such as special effect polishes (i.e. unique finishes such as sequins, glitter, magnetic and

metallic) and nail art appears to be waning, women report high interest in natural and gentle nail care

concepts, as well as products that emphasize ease of use and convenience.

Nail treatments provided a bright spot in the nail category in the past year in the North America, growing

sales by 12% from 2012-2014. Nail repair and the return of more neutral and bare nails have helped drive

usage of treatment products, including base and top coats. Mintel data shows 30% of women who do their

own nails report using nail treatments.

One of the biggest players in the treatment segment is Sally Hansen. A collection of new product

launches, as well as growth from some existing products has helped spur sales for the brand. The brand’s

Rehab products, aimed at treating severely dry, damaged cuticles and nails, combined for sales of more

than $2 million for the most recent 52-week period (ending Oct. 5, 2014). Sally Hansen also launched its

Big Shiny and Big Matte Top Coats in 2014, which generated more than $3 million in sales, and claim to

enhance manicures while drying in seconds.

Unlike many beauty and personal care categories, natural positioning is not a prevalent theme in the nail

category. Yet, nail care users express some concerns about nail health and the effects of chemicals in nail

care products. In fact, 21% of all nail product users worry that nail polish is damaging their nails, and

nearly 20% are concerned about chemicals in nail polish. The premium end of the market has picked up

on this and brands like The Body Shop and Zoya are becoming more active in natural nail color with

products that promote a message of nail/skin health and natural ingredients. The Body Shop’s November

2014 launch of its Colour Crush line claims to be 100% vegan while also containing Community Fair

Trade marula oil. Zoya emphasizes a “free from” approach with its line of nail polishes.

A prominent theme among more niche nail brands in the past year has been natural and reduced-chemical

nail polishes. Natural/low-chemical nail polishes generate the highest level of interest among nail product

users, with 67% of respondents reporting interest. Similarly, 56% of nail product users report interest in

gentle nail care products. Concern about nail damage from frequent polishing as well as a broader

consumer concern about product ingredients is fueling interest in natural and gentle products.

Interest in natural nail care also extends to the salon market, as eco-friendly nail salons are becoming

more prevalent. While still a relatively niche concept, concerns about skin and nail health and the

chemicals used in nail products have led more salons to offer eco-friendly products and organic nail

treatments.

UNDERSTAND CUSTOMER BASE

UNDERSTAND 4P’S

SWOT ANALYSIS

Positionning : Luxury Nailpaint brand

Segment : Urban upper class women

Target group : Fashion conscious people/ make-up livers

STRENGTHS

Strong luxury brand name and image

Strong presence over numerous luxury avenues across the world

Successful foray into all lifestyle product lines: fragrances, skincare, make-up

Increasing vitality of its emblematic product lines

Excellent branding & advertising strategy

WEAKNESS

Presence in a limited market

Low revenue and presence in Latin and South America

Low brand recognition amongst men

Replicas create a problem to brand identity

Vertical integration

OPPORTUNITIES

Developping the e-commerce

Expanding in emerging markets

Focusing on green initiatives

Increasing technological innovation investments

Investing in the male market

Developping the selective retailing network

THREATS

Tough existing competition

Increasing number of new designers

Counterfeiting

Competition from-lakme, mac, revlon, oriflame,Avon

MARKET STRATEGY

Maintain relationships with a few key people who can help you inexpensively promote your

business. (i.e., bloggers, beauty editors,friends and family) Return the favor to them bu also

promoting their business and efforts. Meet, Greet, seek and find your audience.  exhibiting at

trade shows and conferences helps your potential customer get to know you and your business.

Help someone else. You will attract aspiring entrepreneurs, people who are trying to reach your

level of success. Be a mentor to them and help them along the way however you can. By helping

others you help yourself The most important factor in a customer’s decision to buy a bath and

body care item is fragrance. So you need to make sure it is possible for the customer to smell the

product. For bar soaps, this just means a permeable package, but for liquids it means that you

have to be willing to supply product testers. Make your products unique and eye catching along

with having an overall cohesive brand so that they stand out among all the other products you are

competing with on store shelves and online. Pointing out the uniqueness of the products on the

packaging is equally important. For instance, some of our products are vegan and all are

vegetarian so we say that on every box, label, and catalog.

NAIL PAINT SCORECARD - LATIN AMERICAN COUNTRIES

PARAMETERS RANK(1-5)

1.Colour quality better than competitors(eg:lakme)

2. Nailpaint range expensive in your country

3. Quantity of the nailpaint should be more than at present

4.Large variety to choose

5.Shades precise as per label

6.Nail paint stays longer than 30 hrs. on nail

7. Nail paintlooks true to colour in bottle

8. Nail paint gets chipped or crack soon.

9. Price set is favourable according to nailpaint

10.Nailpaint suitable for nail art

2.76

3.2

3.14

2.88

2.9

2.78

2.84

3.04

2.88

3.1

NOTE: The data was collected through survey on 50 respondents and accordingly ranks have been provided.