Virtual Guest Lecture International Market Selection Choice of

Housekeeping rules + Info • Questions at the end - Use Q&A to type

Svend Hollensen • Ph. D. (Dr. ) and Associate Professor of International Marketing at

Global Marketing Eighth Edition Part II Deciding which markets to enter Chapter 8 &

Country screening as a ‘funnel’ process: Copyright © 2020, 2017, 2014 Pearson Education, Inc.

Figure 8. 1 Potential determinants of the firm’s choice of foreign markets Copyright ©

Figure 8. 4 The market attractiveness/competitive strength (MACS) matrix Copyright © 2020, 2017, 2014

Table 8. 2 Dimensions of market/country attractiveness and competitive strength (MACS) Copyright © 2020,

Figure 8. 5: Underlying questionnaire for locating countries on a market attractiveness/competitive strength (MACS)

Figure 8. 8: The international market segmentation/screening process: an example of the proactive and

Figure 8. 7 Micromarket segmentation Copyright © 2020, 2017, 2014 Pearson Education, Inc. All

Exhibit 8. 4 Bajaj is selecting new international markets ignored by global leaders Source:

Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

In 2017 -18 Bajaj sold app. 2, 0 million motorcycles of which one third

Bosch Security Systems Exhibit 8. 1, p. 276 -281: Copyright © 2020, 2017, 2014

Robert Bosch Gmb. H The BOSCH Group Automotive Industrial Technology Consumer goods and Building

‘Safety First!’ The assignment: • Research the market of fire detection systems in the

Project approach 1 st Step: Internal analyses à Get to know your company and

Bosch Security System: IMS in Middle East for Fire Detection Systems Market screening of

Fire Market ¦ Safety market (Lives involved) ¦ Law driven market ¦Very large market

ire system requirement Fire fighting Fire detection • • Fire alarm panel Smoke /

Exhibit 8. 1 Bosch Security Systems: IMS in the Middle East for fire detection

2 nd Screening: Method: MACS analyses Determine how you are going to ‘measure’ your

Table 8. 4 Measurement/evaluation of screening variables Copyright © 2020, 2017, 2014 Pearson Education,

Table 8. 4 Measurement/evaluation of screening variables (Continued) Copyright © 2020, 2017, 2014 Pearson

Figure 8. 10: Bosch Fire Detection Systems MACS matrix Copyright © 2020, 2017, 2014

Selected export countries • 1. United Arab Emirates ( on hold ) • 2.

Question…. ? You have chosen your export country; have you now successfully executed your

Project approach Step: External analyses Competitor analyses - Focus on finding strengths and weaknesses

Figure 8. 13 The incremental strategy (waterfall approach) and simultaneous strategy (the shower) Source:

Example ‘of ‘Waterfall: Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

Exhibit 8. 2 Sunquick’s waterfall approach Copyright © 2020, 2017, 2014 Pearson Education, Inc.

Figure 8. 12: Change in Sunquick’s market shares over time Source: Sunquick. Copyright ©

Global Marketing Eighth Edition Part III Market entry strategies Chapter 09 Some approaches to

Figure III. 2 Classification of market entry modes Copyright © 2020, 2017, 2014 Pearson

Figure III. 3 Examples of the different market entry modes in the consumer market

Figure 9. 1: Factors affecting the foreign market entry mode decision in a specific

Exhibit 9. 1 Zara is modifying its preferred choice of entry mode, depending on

In 2012 a JV was formed …. Muller Quaker Dairy One of the best-selling

In 2013 a big factory in Batavia, NY was opened ………. . Copyright ©

But another competitor was also good in the Greek-style yoghurt, Ghobani, which was perceived

Thank you ! Questions are welcome now or later on svend@sam. sdu. dk Next

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Housekeeping rules + Info • Questions at the end - Use Q&A to type your question - Or ‘raise hand’ button to ask your question via audio - Upvote a question if you also have the same question • Recording will be shared • Slides will be shared Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

Svend Hollensen • Ph. D. (Dr. ) and Associate Professor of International Marketing at University of Southern Denmark (Sønderborg). • Practical experience in Marketing from his work at multinational companies. • Multiple publications to his name including Internationally recognized Journals and Pearson Marketing books. • Research Interests: Relationship Marketing, Globalization and Internationalization of companies. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

Global Marketing Eighth Edition Part II Deciding which markets to enter Chapter 8 & 9 The International Market Selection (IMS) and Choice of Entry Mode Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

In 2017 -18 Bajaj sold app. 2, 0 million motorcycles of which one third were exported. While the world’s three largest motorcycle companies (Honda, Yamaha and Suzuki) focus on developed markets like United States and Western Europe, the world’s fourth largest motorcycle manufacturer, Bajaj, has chosen to focus on developing countries. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

‘Safety First!’ The assignment: • Research the market of fire detection systems in the Middle. East. • Selection of three countries based on self defined selection criteria, with a view to select a country which has the highest potential for short term success. • Write an operational market introduction plan related to Bosch brand products and the identification of potential partners in these countries. • Support Bosch Security Systems in achieving the target goals determined for the business unit Fire Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

Project approach 1 st Step: Internal analyses à Get to know your company and your export product Too much emphasis on technical or functional product aspects! Focus must be on = - What ‘solution’ does your product offer? - Which ‘clients’ can profit from this solution? First leads to select potential export countries! 20 Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

Bosch Security System: IMS in Middle East for Fire Detection Systems Market screening of 8 leading countries in the Middle East: Egypt, Iran, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

ire system requirement Fire fighting Fire detection • • Fire alarm panel Smoke / heat detectors Manual Call points Interface modules Signaling devices Aspiration systems CO detectors Alarm follow-up • • • Dialer for external alarm Paging systems Annunciation tableau Remote keypads Floor plans • • • Gas extinguishers Sprinkler systems Fire extinguishers Fire doors Fire hoses Security Evacuation • • • EVAC system Recorded messages PA Microphone Emergency exit signs LED indicators Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

2 nd Screening: Method: MACS analyses Determine how you are going to ‘measure’ your variables! MA Variables – Market Attractiveness - Economic position – GDP per capita (Gross Domestic Product) - Growth in the construction industry – number of planned billion dollar construction projects CS Variables – Competitive Strength - Strong local network: asses the quality of your local contacts - Sufficient local sales & technical support: number of Bosch sales advisors who are locally present Determine per variable how much they affect the attractiveness of a country and the position of your company, attach a ‘weight’ per variable. Research every variable for each country individually and provide them with ‘scores’ 25 Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

Question…. ? You have chosen your export country; have you now successfully executed your project? >> !!NO!! << This is the point where the ‘real’ project kicks off! 30 Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

Project approach Step: External analyses Competitor analyses - Focus on finding strengths and weaknesses of the competitors Learn from the ‘ best in class’ Honeywell & Siemens ; -Local presence and support -Product assortment -Strategic alliances -Social involvement Research: -Corporate annual reports -Publications on the internet -Ask your clients !! -Visit trade exhibitions Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

Figure 8. 13 The incremental strategy (waterfall approach) and simultaneous strategy (the shower) Source: Keegan, Warren J. ; Green, Mark, Global Marketing Management, 2 nd edn, p. 410; © 2000. Electronically reproduced by permission of Pearson Education, Inc. , Upper Saddle River, New Jersey. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

Exhibit 9. 1 Zara is modifying its preferred choice of entry mode, depending on the psychic distance to new markets A Zara shop in Shanghai, China Source: Qilai Shen/Bloomberg/Getty Images. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

But another competitor was also good in the Greek-style yoghurt, Ghobani, which was perceived as superior in quality and innovation In Dec. 2015 Quaker (Pepsi. Co) and Muller Group agreed to exit the JV Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

Thank you ! Questions are welcome now or later on svend@sam. sdu. dk Next Wednesday 13. 05. 2020, 11: 00 I will talk about Social Media Marketing (Ch. 17 in GM, 8 e) (SDU University of Southern Denmark, Sønderborg) Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved

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