The International Marketing Plan

Task Description As the international marketing director of a company, you have been assigned to develop a "market entry plan" for a product that is aiming to enter for a particular Australian market segment in 2020. Your tasks are: Briefly explain the profile of Australian market segment and the product for this segment, Identify the pros and cons of the most useful market entry modes that you have studied in this unit, and decide and explain the best entry mode strategy for your company, and Design three frameworks outlining the pricing, distribution and promotional strategies. Notes for your assessment task

Running Head: International Marketing Plan 0
TATA MOTORS
International Marketing Plan
(Student Name)
2/20/2020

International Marketing Plan 1
Table of Contents
Introduction......................................................................................................................................2
Background of the company............................................................................................................2
Market Segment of Australia...........................................................................................................2
Pros and Cons of Market Entry Mode.............................................................................................3
Best Entry Mode..............................................................................................................................5
Pricing Strategy...............................................................................................................................5
Distribution Strategy........................................................................................................................5
Promotional Strategy.......................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
The international market covers threat and opportunities that attract new and existing
companies to enter in the international market which can help them to grow in an operative and
well-organized way (Stanford, 2017). Australia is considered as one of the top 15 countries in the
world that have skill to take the car from the perception to completion. Therefore, one of the
company, Tata Motors is planning to entre in the Australian market to maximize its sales and
revenue with enhancing their roots of success in the international market (Beer, 2018).
Background of the company
Tata Motors is one of the largest automobile manufacturing companies in India. It is
controlled and managed by Rattan Tata as he is the chairman of the Tata Group India Ltd. Tata
Motors manufactures cars, trucks as well as tractors through which they cover all segment of
customers in an operative way (Sharma & Jain, 2019). Tata owns various automotive companies
along with luxury car brands such as Land Rover, Jaguar, and Daewoo. The company expanded
its business in Africa, USA, UK as well as in Middle East Countries. The company has its
occurrence in over 170 republics (Garg, 2019).
Market Segment of Australia
Geographic: in order to analyse the geographic segment of Australia, it has been found
that the economy of Australia as an automobile is considered as the principal engineering
industry. Such commerce supports numerous additional businesses as well which include steel,
aluminium, rubber, glass, paint, electronics as well as plastic. The yearly revenue of Automobile
industry in Australia surpasses $160 billion as well as it is one of the protuberant bases of
taxation income to the Australian Government (Shin, Lim, Kim & Choi, 2018).
Demographic: Motor transportation is one of the most preferred transportation ways for
Australian people. In Australia, automobile are regarded as one of the most easily as well as
reasonable means of transportation by the native populace and thus a protuberant business fitting
to the economy of the Australia. The Australia automobile industry hires roughly over four lakh

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personnel. It also aids the native populace by proposing modern technology cars (Milowski,
Bhattacharjee, Singh & Ray, 2018).
Behavioural and Psychographic: Constantly increase in the prices of fuel as well as
GFC, the people in Australia majorly demand for lesser fuel-efficient car. On the other hand,
SUV compact models as well as Small & Light passenger cars are the top selling products in the
market. The volume of high and middle class people is more than low class people. Therefore,
the demand of SUV cars is high among consumers who majorly drive in between the age of 18 to
52 (Malihi & Shee, 2017).
Therefore, according to the analysis of the Australia market segmentation, Tata Motors
will deliver its SUV cars as well as Hatchback cars to entice extreme number of customers
towards its product in an operative and efficient way.
Pros and Cons of Market Entry Mode
There are different types of international expansion entry modes as they are clarified
below:
Exporting
Exporting is the sources through which the company sales its products and services in the
foreign countries that are sourced from the home country.
Pros of Exporting
 The company can use the strategy of direct exporting to check its product in global
marker before creating any kind of biggest outlay in the international market.
 Such approach supports the company to defend the patents, trademark, goodwill as well
as their intangible assets.
Cons of Exporting
 This approach will turn-out to be actually great cost tactic for the company that can affect
its revenue to the certain extent.

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 The company generally has low control over the activities of business in exporting.
Licensing
Licensing allow a distant organization to work using the approaches, expertise as well as
trademark of home company to yield the product of native corporation below definite terms.
Pros of Licensing Allow growth in numerous regions with minimal investment
 Offer a huge source of income for the company
 Stumpy cost of entrance into a global marketplace (Hollender, Zapkau & Schwens,
2017).
Cons of Licensing
 It can influence the assimilated information a well as pose as forthcoming rivalry for the
trade
 In some of the cases, the company might not be able to work out whole control on its
permitting as well as licensing associates in the global marketplace.
Partnering
It is one of the method in which two or more businesses decide to invest its amount in
new chance in the international marker.
Pros of Partnering
 The associates can force their individual know-how to raise as well as enlarge the
business within the selected market.
 The party-political risk cover in partnering is low due to the existence of native partner as
he would have understanding of the native marketplace as well as its business situation.
Cons of Partnering
 This method can enhance the prospect of cultural smashes within the company due to
variance in the organizational philosophy.

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 In the occasion of clash, disbanding of joint venture is matter to be drawn-out as well as
intricate lawful procedure.
Acquisition
It includes buying a current business in the international market and mixing it as a
secondary within the parental company.
Pros
 The company does not require starting from the scratch as they company the existing
facilities, infrastructure as well as consumer base of the acquired company.
 It is the firmest mode of the entrance into an global market at enormous scale
Cons
 The possibility of cultural clashes can be increase in such entry mode due to the
organization cultural difference.
 The difference in the technical procedure is one of the best collective issues in such
method.
Franchising
It offer a potential self-governing corporate owner, the right to ran business a s franchise
by using he strategies of the company, their format as well as its technology.
Pros of Franchising
 It allow the home company to share the risk and can better protect the trade secrets.
 The company can control over its cost and can easily spread awareness about its product
to the certain extent.
 It is less risky.
Cons of Franchising
 The image of the company highly depends on the franchising team.

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 The franchisee derives to the bench with the capital to participate, but home corporation
gives up the portion of control over the global franchises (Shen, Puig & Paul, 2017)
Best Entry Mode
The entry mode which is highly suitable for Tata Motors is franchising due to the main
reason, Tata Motors is one of the well-known corporation in the market. With the help of
Franchising, it can able to reach maximum number of consumers at low cost with limited period
of time. They can able to analyse the demand of the consumers more efficiently. It is one of the
safest ways to entre in the new market. After getting successful response, the company can adopt
the licensing method that can help them to gain the trust of the consumers. Therefore,
Franchising will be the best method for the company to enter in the Australian Market, through
which they can able to analyse which car, is highly demanded among the consumers. It is cost
effective strategy for the company.
Pricing Strategy
Tata Motors has diverse portfolio which represent that the company is required to adopt
diverse pricing strategy for its products. There are certain pricing strategies that the company can
adopt are as:
 Premium Pricing
It is one of the strategy in which the company price its products high to present image that their
products are premium, high-value as well as luxury. Therefore, for SUV, the company can
manage premium pricing method in which the company will impose high price on SUV cars that
will help in covering high class people.
 Penetration Pricing
Penetration pricing is one of the method in which the company keep their price low while
entering into the new market to draw an attention of the consumers away from higher-priced
competitors. Thus, for Hatchback cars, the company will adopt penetration pricing method in
which the price of Hatchback bars will keep lower than industry trend which will help them to
cover middle class individuals in an operative way (Kireyev, Kumar & Ofek, 2017).

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Distribution Strategy
The company Tata Motors has third prevalent service as well as sales network in other
countries such as India. Therefore, to enter in the Australian market it is essential for the
corporation to partnering with various distributors across Australia as well as service centers are
also required to be well fortified with the auxiliary parts as well as fittings. The products of Tata
Motors will be display in showrooms that can help to provide great experience to the consumers
at greater level (Yang, Hu, Gurnani & Guan, 2018).
Promotional Strategy
Promotion plays a vigorous role for the success of the new business in the new market.
Therefore, Tata Motors is required to focus over its promotional strategies at greater level as they
are:
 To ratify its passenger vehicle at international level, the company has avowed Lionel
Messi as their brand Envoy. Therefore, it will create great impression over the new
consumers in Australia as well.
 Furthermore, the company can also adopt traditional marketing method in which the
advertisement in TV Newspaper as well as electronic or social media such as Facebook,
Instagram can be done by Tata Motors (Allegranzi & Pittet, 2017).
 Tata Motors can also arrange small event near the shopping mall to grab the attention of
the people in Australia and provide coupon or any discount to attract them towards the
product.
 Bill Boards is one of the effective promotional strategy in which, Tata Motors can set up
three to four billboards in the crowded and famous place to spread awareness about the
brand to the certain extent.
Conclusion
It can be concluded from the above analysis that managing business in the international
market is one of the tough tasks for the companies. One of the Indian leading company Tata
Motors is planning to enlarge its corporate in the country Australia as well. The demand of SUV
cars and Hatchback cars is high that will provide a chance to the corporation to goal the

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customers in an effective way. The company can adopt Franchising mode of entry to expand its
business at low cost. They can analyse the market in more effective manner afterwards they can
enter it through licensing. Furthermore, it is required to adopt premium and penetration pricing
method as well as need to focus over its promotional strategy to the certain extent.

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References
Allegranzi, B., & Pittet, D. (2017). Promotion Strategy. Hand hygiene: a handbook for medical
professionals, 9, 230.
Beer, A. (2018). The closure of the Australian car manufacturing industry: Redundancy, policy
and community impacts. Australian geographer, 49(3), 419-438.
Garg, S. (2019). Internationalization of Tata Motors: Strategic Analysis Using Flowing Stream
Strategy Process. International Journal of Global Business and Competitiveness, 14(1),
54-70.
Hollender, L., Zapkau, F. B., & Schwens, C. (2017). SME foreign market entry mode choice and
foreign venture performance: The moderating effect of international experience and
product adaptation. International Business Review, 26(2), 250-263.
Kireyev, P., Kumar, V., & Ofek, E. (2017). Match your own price? Self-matching as a retailer’s
multichannel pricing strategy. Marketing Science, 36(6), 908-930.
Malihi, K., & Shee, H. (2017). STRATEGIC VEHICLES IMPORT SUPPLY CHAIN: A
PARADIGM SHIFT IN AUSTRALIAN AUTOMOTIVE INDUSTRY. Asian Academy
of Management Journal, 22(1).
Milowski, J., Bhattacharjee, K. S., Singh, H. K., & Ray, T. (2018). Alternative Passenger Cars
for the Australian Market: A Cost–Benefit Analysis. In Data and Decision Sciences in
Action pp. 163-173
Sharma, P., & Jain, A. (2019). Case Study on Tata Motors and Maruti Suzuki. Journal of the
Gujarat Research Society, 21(11), 254-261.
Shen, Z., Puig, F., & Paul, J. (2017). Foreign market entry mode research: A review and research
agenda. The International Trade Journal, 31(5), 429-456.

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Shin, J., Lim, T., Kim, M. Y., & Choi, J. Y. (2018). Can next-generation vehicles sustainably
survive in the automobile market? Evidence from ex-ante market simulation and
segmentation. Sustainability, 10(3), 607.
Stanford, J. (2017). Automotive surrender: The demise of industrial policy in the Australian
vehicle industry. The Economic and Labour Relations Review, 28(2), 197-217.
Yang, Z., Hu, X., Gurnani, H., & Guan, H. (2018). Multichannel distribution strategy: Selling to
a competing buyer with limited supplier capacity. Management Science, 64(5), 2199-
2218.