International Marketing Plan Guide
International Marketing Plan Guide
International Marketing Plan Guide
Plan Guide
© 2010 All rights reserved. Insearch University of Technology, Sydney and Darren
Paproski, Vancouver Island University.
TABLE OF CONTENTS
Acknowledgments
Executive Summary
Table of Contents
1.0 Introduction
• Brief overview of the company, its main products, target country, main target markets,
and primary entry strategy
2
7.4 Promotion Strategy (including Promotional Budget)
10.0 BIBLIOGRAPHY/REFERENCES
11.0 APPENDICES
11.1 Situation Analysis
11.2 SWOT Analysis
11.3 Evaluation of Alternative Marketing Strategies
11.4 Company promotional/product brochures
11.5 Tariff Rates
11.6 Summary Table of interviews
11.7 Record of Contact and Activities, and Project Plan
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THE MARKETING PLAN
This report (or guide) has been written as an aid to developing an international marketing plan. It
is divided into a number of key sections that are a suggested framework for your plan.
The guide is a generalized approach to writing an international marketing plan. Each section
identifies many key issues that can be addressed in the preparation of such a plan.
Not all the issues are relevant to each company's case. Also, additional issues may arise that are
not covered in this guide. You will, however, find it a useful tool in tackling many of the questions
that do arise.
It can be used to document an approach for new market entry or existing market expansion. A
key assumption is that only one new country market will be considered at a time.
The guide is relevant to marketers of both products and services. For simplicity, however, the
term "products" is used throughout.
The plan is principally of benefit to the company's managers and current or potential owners of
the business. It is a document prepared at a point in time that should describe a clear and
concise series of activities that will achieve a particular international marketing objective, in line
with the selected marketing strategy.
DO NOT fill your marketing plan with a lot of irrelevant information. All information contained in
the report must be analyzed and related back to the company and the new market.
Full details of your methodology should be provided in an appendix (e.g. Summary Table of
Interviews, which will describe part of your methodology in terms of respondents).
4
SECTIONS 3.0, 4.0 AND 6.0 (See Appendix 11.1)
Sections 3.0, 4.0 and 6.0 in the Main Report should contain a summary of the main points of the
Appendices.
Although there is no clear cut formula for incorporating material from the Appendices in the main
report, some sections (SWOT Analysis and Alternative Marketing Strategies) will contain almost
all of the Appendix material in the equivalent section of the Main Report, while other sections
(Situation Analysis) will be abbreviated in the Main Report - but with sufficient content to clearly
address the key questions and issues related to that section. You can, if you wish, abbreviate the
Appendices in the Main Report and reference material back to the Appendices. In all cases, in the
Main Report, you must clearly reference the appendix material.
The strengths, weaknesses, opportunities and threats should be clearly laid out in your report. It
is often best to present the SWOT in a table, either in the Main Body or in the Appendix.
It is vital that you analyze the information in the SWOT analysis and discuss the implications for
your company in the new market. The implications should be stated in the main body of your
report.
Strengths Weaknesses
• Identify the company's strengths • Identify the company's weaknesses
• relative to those of its competitors. relative to those of its competitors.
• What are the characteristics of the • What are the characteristics of the
company's product/service offering that company’s product/service offering that
are not generally matched by are not generally equal to its
competitors? competitors?
5
5.0 OBJECTIVES
5.1 International Objectives
Why is the company seeking to expand internationally?
• Seeks growth via international business
• Will improve cost position through economies of scale
• Market diversification etc.?
This targeting is required because companies usually cannot satisfy the needs
and requirements of each segment equally well. From an examination of these
different needs, it will become apparent which products and services within the
company’s portfolio will be the most attractive to these market segments.
The company can also define its objectives in terms of how its market share after
a given time will compare to its competitors, for example:
• Market leader
• Market follower, etc.
A key consideration is where can the company’s marketing effort yield the
greatest return? In other words, where is Return-On-Investment (ROI) highest?
The company should define its market objectives, in line with the key issues for
international expansion, as identified in section 3.0 Situation Analysis. Often,
objectives will be defined in terms of quantity (volume of units) or value ($) of
goods sold over a given time period.
Financial objectives follow from the above analysis. Marketing programs must
ultimately be funded from cash flow generated within the market, with profits
being used by the company for:
• Repatriation to shareholders
• Funding further growth
• etc.
6
6.0 RECOMMENDED MARKETING STRATEGY
The recommended marketing strategy is a result of the analysis in Appendix 11.3: Evaluation of
Alternative Marketing Strategies.
Remember that if you decide not to proceed with market entry or expansion, this can also be a
reasonable strategy option.
Target markets and positioning statements should be clearly identified. Often it is useful to clearly
define a positioning strategy in a single sentence which summarizes in a general way what the
company seeks to achieve and how it will do it. For example:
"We will achieve market leadership by providing quality ergonomic furniture solutions to architects
that best meets their needs and requirements."
"To discerning people who want the best, Mercedes is the car that will give you the benefits of the
latest technology combined with safety and power, offering maximum reliability and state-of-the-
art quality".
Entry Strategy
When a company makes the commitment to go international, it must choose an entry strategy.
This decision should reflect an analysis of market characteristics (such as potential sales,
competition, strategic importance, strengths of local resources, cultural differences, and country
restrictions and deregulation. In addition, company capabilities and characteristics, including the
degree of near-market knowledge, marketing involvement, and commitment that management is
prepared to make must be considered.
Companies most often begin with modest export involvement. A company has four different
modes of foreign market entry from which to select: exporting, contractual agreements, strategic
alliances, and direct foreign investment. The different modes of entry can be further classified on
the basis of the equity or non-equity requirements of each mode. The amount of equity required
by the company to use different modes affects the risk, return, and control that it will have in each
mode.
7
Alternative Market-Entry Strategies
Exhibit 11.2
11-14
8
7.0 MARKETING MIX STRATEGIES AND TACTICS
Break each of the 4 Ps into Strategy and Tactical Plan elaboration. You need to provide a lot of
detail, particularly in the Tactics component. The marketing mix strategies and tactics must be
integrated and consistent to achieving company objectives.
How product, promotion, distribution, and pricing strategies evolve in international marketing is
dependent on the approach to internationalization the company takes. Therefore, you need to
consider your marketing mix strategy in light of your market entry strategy addressed in Section 6.
Differing strategies and market tactics may be required for various target segments. For a given
target segment, alternative strategies and programs should be formulated and evaluated as to the
effectiveness of each in achieving company objectives.
7.1 Product
Make sure that product strategies support the company’s overall strategy.
• Modify existing product(s) - (what features and benefits will your
• products provide?)
• Develop new product(s)
• Add or drop products from the line
• Determine product positioning
• Develop branding approach
• Register product designs, brand name, trademarks, etc.
• Tailor product packaging and labeling to the market
• Initiate product registration
7.2 Price
7.3 Distribution
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• Purchase or establish your own means of distribution in the targeted country
You must decide whether you are going to use single or multiple channels.
Identify potential partners for the company (distributors, agents, joint venture partners, etc.) based
on the chosen production/distribution option and profile according to Important selection criteria
such as:
• Established company with proven track record of business success
• Sales and marketing expertise and extent of geographical distribution/network coverage
• Access to funds to support and sustain market entry for the company’s products
• Personal contact in each of the targeted end-user segments
• High profile/integrity/good reputation, as perceived by end-users
• Complementary products manufactured/distributed
• Technical competence/ability to communicate to end-users
• Geographical extent of market coverage
• Other criteria which end-users may consider to be important
• Extent of interest in locally representing the Local countryn company
Having decided on one or more local partners, you must decide whether to
negotiate exclusive or non-exclusive distribution arrangements with them.
7.4 Promotion
In order to promote your products and your company you must consider a
number of major issues:
• Overall communication message that is suited to the local culture
• "Pull" or "Push" approach
• Type of promotion (personal selling, point-of-sale promotions, direct mail, etc.)
• Media to be used (radio, television, print, etc.)
• Use of Social Media platforms such as Facebook, Youtube, Twitter, etc.
• Branding (family versus individual)
• Dealer incentives
• Trade shows, conferences, etc., in which you will participate
• Communication Extension vs. Adaptation
• Must the specific advertising message and media strategy be changed from region to
region or country to country? What are the arguments for each?
• Global Choices with respect to advertising messages:
o Prepare new copy for foreign markets in host country’s language
o Translate the original copy into target language
o Leave some or all copy elements in home country language
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8.0 PLANNING BUDGET
The recommended cost of a marketing program is subject to serious consideration and approval
by management.
Establishing the marketing budget is related directly to the preceding planning activity.....
Strategies and Tactics. It must, of necessity, follow development of your action programs.
Forecasts should be presented in the form of Profit and Loss Statements for each year of the
Plan, ideally with the 3 or 5 years of P & L statements rolled up into one table.
Forecasts should be as realistic as possible - even if this means that there may be losses.
You should model two further scenarios - a "best-case" and "worst-case" scenario, clearly
identifying your changes and assumptions in each scenario and using the same structure and
time periods as in the "Most-Likely" scenario.
A table summarizing the P & L Statements for all scenarios should be presented in this section.
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9.0 IMPLEMENTATION AND CONTROL
This section pulls together all the tactics and actions required for the successful implementation
of the market entry/expansion program.
Control activities are directed towards programs initiated by the marketing process.
As the market process is based on implementation, it is necessary to state the way in which the
marketing activities will be monitored and their outcomes measured. This will indicate whether the
marketing objectives are being achieved.
Typically, control measures will be based on sales volume, sales value, or marketing contribution
over a period of time. Measures may also be based on the number of distribution points obtained,
quantity of floor stock placed, level of consumer awareness, change in consumer attitudes,
amount of brand switching, or other measures that are appropriate and relevant.
You must also establish where decision making control will lie. Considerations of where
decisions will be made, by whom, and by which method, constitute a major element of
organizational strategy. Management policy must be explicit about which decisions are to be
made at corporate headquarters, which at international headquarters, which at regional levels,
and which at national or even local levels. Most companies also limit the amount of money to be
spent at each level. Decision levels for determination of policy, strategy, and tactical decisions
must be established. Tactical decisions normally should be made at the lowest possible level,
without country-by-country duplication.
You should also develop contingency programs in case things do not go according to your plan.
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11.0 APPENDICES
The Appendices allow you to include useful information without disrupting the development of
your argument in the body of the report with copious data.
What is the core business activity of the company? What industry are you in and what are the
major industry trends in Local country and overseas? What is your target market segment(s) in
Local country? Who are your important customers?
What are the company’s operating revenues for the past three years?
Who are the key managers? What are their skills and experiences and how does this relate to the
success of the venture?
What R & D activities does the company conduct? What percentage of revenue is spent on R & D?
What is the status of the company’s current technology (ideas, prototypes, etc.)?
What patents/copyright or trademarks does it hold?
What competing companies have technologies that are superior or equal to yours?
Who are its main local country competitors? Are the major competitive products manufactured
locally or overseas? What is the company’s and its competitor’s respective market share?
Does the company have access capacity for export (if relevant)? How might this be expanded?
What are the critical product components and will there be problems in sourcing supplies?
1
For more detail on various aspects of Situation Analysis see www.netmba.com.
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• Does it have the funds available to support an effective market entry/expansion
programme overseas?
• Where are the funds coming from and when will they be available?
• How accessible are the funds and would they be available for an export initiative?
• What are the company’s limits on funding overseas initiatives?
What competitive strategy has brought the company to its present market position? What key
competitive advantages underpin this strategy?
What are its 'Distinctive competences', 'unique selling proposition' or 'competitive edge'? What
are the chief factors that will account for its international success? Are these strengths likely to be
sustainable in international markets?
What is it about your products/services that would encourage a potential customer to switch from
their existing supplier to your firm?
How are your products differentiated? What strengths/advantages do they have? What is the
company’s cost position (is it a low cost producer)?
Does the company have a competitive advantage in terms of its personnel – key executives,
managers, sales personnel, etc.?
• Marketing skills (specific human marketing resources, corporate culture oriented toward
marketing, ability to attract good marketers).
• Market research capabilities (and databank of information)
• Information technology and telecommunications capability
• Relationships with suppliers
• Relationships with distributors
• Relationships with media
• Relationships with key customers
• etc.
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11.1.3 Market Analysis
Before analyzing the market, you should provide some rationale as to why you have chosen a
particular country for investigation. Also describe what selection criteria was used.
What are the main environmental factors influencing market demand for the relevant product
category, and therefore the company’s operation in the country.
Are there any restrictions on remitting licensing and royalty fees overseas?
To what extent do the regulatory standards govern manufacturing, promotion, labeling, packaging,
distribution and pricing?
Who are the major regulatory authorities? Provide details of who should be approached for
product registration.
Outline the registration/certification process. What are the typical registration delays and costs for
this product category?
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11.1.3.1.3 Economic Conditions
Provide a brief economic overview with an assessment of the following economic indicators:
• Population size
• GDP
• Current and forecasted economic growth
• Inflation rate
• Unemployment
• Interest rates (base lending rates)
• Disposable incomes
• Other relevant indicators
Provide information on any social and culture factors that will impact on your firm's
activities/products within that country.
Include:
• What is the country's cultural and language affinity with local country?
• Level of entrepreneurial spirit
• Attitudes (e.g. health, environmental consciousness, etc.)
• Leisure interests
• Any social trends that you may be able to take advantage of?
List all relevant demographic trends in the target overseas market (age distribution, per capita
income, level of education, socio-economic groupings, etc.)
Only include details that impact on your company's activities in the target country, in terms of
supply, storage, distribution, demand, etc.
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11.1.3.1.8 Physical Environment (Infrastructure Indicators)
• Number of airports (including freight facilities at airports)
• Number of ports and types of facilities
• Length/quality and facilities of the rail network
• Quality of road network
• Description of telecommunications, media and information technology environment
• Degree/percentage of urbanization
• Level of literacy
• Number of telephones/radios/televisions/cars/computers/daily newspaper circulation
Can the market be meaningfully segmented or broken into homogeneous groups of buyers?
Identify these major end use segments. Criteria for segmentation may include:
• Age
• Geographic location
• Psychographic characteristics
• etc.
For each of the key market segments (consumer and industrial) you identify, provide information
on buyer characteristics such as:
• Key participants
• Degree of concentration/geographic dispersion of target consumers
• Level of overt information seeking
• Degree of brand awareness and loyalty
• Location of product category decision (i.e. home or point of sale)
• Sources of product information and current awareness/knowledge levels
• Duration of the decision process (repeat, infrequent, new purchase)
• Level of buyer interest and involvement in the purchase decision
• Risk of uncertainty of negative purchase outcome
• Time and location of consumption
Who specifies, initiates and influences the purchasing decision in each market segment?
Identify and rank in order of importance the key considerations affecting the purchase decision in
each 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
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• Other
What is the size of the market? What are the total sales figures for the relevant product category
over the past three years, and projected sales:
• By volume (i.e. units)
• By value (i.e. $)
What are the major factors influencing any changes in product sales? What is driving these sales
trends in this market?
Provide a breakdown of the above historical and forecasted sales figures for each of the major
end-user segments (best estimates will suffice if statistical data is not available).
Is the proportion of sales to each of these segments changing? If so, what are the likely reasons
for these changes?
What is the size of the import market? Provide import statistics for the past three years, and
projected imports:
• By volume (i.e. units)
• By value (i.e. $)
For this product group, will the effectiveness of marketing variables differ by stages of the product
life cycle?
What is the stage of the product life cycle? What are your reasons for your assessment? Are
there apparent changes over time in the types of products demanded? How long has the
technology/product been established?
What are the cost factors in production, marketing and distribution in terms of the cost of?
• Raw materials or components
• Tariffs and other barriers
2
Ferrell, O.C. and Hartline, M.D. (2005), Marketing Strategy, 3 rd ed., Mason, Ohio: South-Western, p.47
18
• Land or factory space
• Labor
• Electrical power
• Insurance
• Meeting local quality standards and regulations
• Packaging
• Transport
• Warehousing
How do these costs compare to those of foreign suppliers, particularly local suppliers? Are local
manufacturers/suppliers at a cost advantage or disadvantage?
What are the average margins and price levels through the distribution channels (i.e. from
manufacturer, wholesaler, retailers, etc.)?
Is the country a net importer or a net exporter of this product group? Which countries are the
major foreign suppliers to the market? What is their market share?
Who are the major competitive manufacturers/suppliers (overseas and locally based) of these
products?
Identify and rank in terms of market share the major local and overseas manufacturers/suppliers
and provide the following information:
• Ownership
• Other businesses they are active in
• Location of production
• Products manufactured (type, strengths/weaknesses, patented features, etc.)
• Comparative size (turnover figures)
• Market segments they are most active in. Why?
• Business strategies employed (basis of differentiation or low cost strategy)
• Method of distribution/type and identity of local representatives (agents, distributors direct
to end-users, etc.)
• Pricing structure (retail, wholesale, distributor margins offered, etc.)
• Financial, production and marketing resources and skills
• Reputation amongst customers
Assess the relative threat that your company represents to these competitors.
What will be their likely retaliatory reaction to your market entry?
Can they neutralize different marketing programs you might develop?
What substitute products are in use and which companies supply them?
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• Product competitors
• Generic competitors
• Total budget competitors3
3
Ferrell and Hartline, 2005
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APPENDIX 11.2 SWOT ANALYSIS
A tool that is commonly used to assess the market opportunities in relation to the likely barriers to
market entry or expansion is the "SWOT" analysis. This is a business assessment made from a
review of the overseas market (external factors) and the company (internal factors).
11.2.1 Strengths and Weaknesses of your firm and its products/services (in comparison to
competitors), and an analysis of:
Figure 1 in the Main Report considers the main elements of the SWOT analysis.
Based on the company and market investigations, provide an assessment of the firm's likelihood
of success, taking into account the opportunities and problems highlighted by the SWOT.
You must answer the question: should the company attempt to enter or expand its activities in the
targeted country?
The critical issue is whether a profitable business can be established and maintained in the
targeted international market.
This is dependent on whether the company has, or can develop, a competitive advantage that is
sustainable in that market.
SWOT MATRIX
After the elementary study of SWOT analysis, strengths, weaknesses, opportunities and threats
can be identified. The next step is to study how to convert the bad side to the good one. In this
step of the SWOT analysis, strengths of companies should be used to match opportunities,
weaknesses should be converted to strengths, and threats should be transformed to opportunities.
The figure below illustrates the theory proposed by Ferrell and Hartline (2005).
4
See Ferrell, O.C. and Hartline, M.D. (2005) Marketing Strategy 3rd edition, Mason, Ohio: South-Western.
21
SWOT Matrix
22
11.2.4 Summary flow of analytical frameworks.
The main analytical frameworks used are PEST, Situation, and SWOT Analyses. PEST analysis
emphasizes the macro- environment of the target market, which studies four aspects, Political,
Economic, Social, and Technological factors. The situation analysis provide a clear background
of the company stated as internal analysis, customer environment, as well as external analysis.
SWOT analysis is used to assess strengths and weaknesses of the company and its products
and services, and opportunities and threats in the marketplace. All three analytical frameworks
together provide comparatively comprehensive understanding and perspectives to the manager
and fully examine the feasibility from the internal environment to external, from customers to the
company, from weaknesses to strengths.
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APPENDIX 11.3: EVALUATION OF ALTERNATIVE MARKETING STRATEGIES
A thorough examination of all marketing strategies that should be considered by the organization
is included in this section. Each of these strategies needs to be evaluated in terms of advantages
and disadvantages, leading to a recommendation of either accepting or rejecting the strategy.
The main focus in the main body of the report will, of course, be on the recommended
strategy(ies).
Many companies attempt to extend their domestic (i.e. Local country) strategy to international
markets. This may or may not be successful, depending on the similarities of customers at home
and abroad, as well as similarities in competitive offerings.
The following appendices must be completed in the Progress Report as fully as possible as they
may be used as a measurement of individual involvement in the project and therefore considered
in the individual's final project mark:
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