Report on Foreign Market Analysis
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Added on 2020-06-04
Report on Foreign Market Analysis
Added on 2020-06-04
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Foreign Market Analysis
Table of ContentsINTRODUCTION...........................................................................................................................11. ANALYSIS..................................................................................................................................11.1 Analysis of export market.....................................................................................................11.2 Evaluation of business potential for product in export market.............................................62. COMPARATIVE CHOICE.........................................................................................................73. DETERMINE TARGET..............................................................................................................84. STRATEGY.................................................................................................................................94.1 Strategy implement to launch the product in country...........................................................94.2 Marketing activities will implement to launch successfully the products in China............14CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................18
INTRODUCTIONCompany will sell their goods and services at global level to improve their customerbase. For above stated aim, it is fundamental for them to examine cost, risk and in additionadvantages to enter into foreign marketplace. As a result, they can introduce their products atinternational market in an adequate manner. Additionally, it will increase market share of firmand they will able to gain foreign currency (Bodie, Kane and Marcus, 2014). It helps them inimprovisation of their revenues. By exporting items into other nation, government will enhancetheir economic growth. This will aid country to enhancement of their GDP. Present assignment isbased on Louis Vuitton which is much famous brand and operating their business worldwide.They are producing variety of products for people, such as watches, accessories, bags, jewelleryand many more. Now, association wants to export their bags into China. Therefore, it is necessary forthem to analyse market of that nation. For this, they need to evaluate requisite figures of China,for example: population, GDP, GDP per capita and along with median age. To formulatestrategies and policies effectually, it is needed for manager to conduct SWOT investigation. Itwill help to find out opportunities which can be accept by firm because this will provide themgrowth and development. Apart from this, it is required for superior to evaluate businesspotential in export market. Organisation will opt another option for export of bags i.e. India, ifthey are not selling items in China. To accomplish needs of every individual, firm has to segmenttheir market. Finally, an effective strategy need to be created to launch new item at marketplace.This report is going to highlight elements of marketing mix. To make produce more successfulsome market activities like, promotion, distribution etc. will be used by Louis Vuitton.1. ANALYSIS1.1 Analysis of export marketExport market means when products as well as services are sell out to other nations. Withassistance of this, an organisation will develop their image at international level. This will aidthem in improvisation of profits and in addition goodwill. According to Malhotra, Sivakumar and Zhu, (2011) Export marketing comprisesadministration of those activities that are associated with marketing of items which are going tointroduce in other country. This will assist association in expansion of market and along with,1
they can capture attention of numerous people. If organisation is doing their business at globallevel then, they need to follow rules and regulations which are created by government. Louis Vuitton is a luxury retail enterprise which is founded in near 1855. They are doingtheir business in various segments, such as shoes, jewellery, watches, bags, books, accessoriesand so on (Schwens and Kabst, 2011). They are doing their business in approximately 45 nationswith more than 450 outlets. Now, they want to enlarge their business in China by export bagsover there. They will help them to improve their client base. Along with this, it aids them toincrease range of their products and services. For above stated aim, they have to analyse marketand situation of China. Henceforth, it is fundamental for them to examine essential figures whichare stated as beneath:Population: In China, there are more than 1.3 billion people are residing and it is foundout as a large population country in world. There is a policy of one child to control thepopulace. As company is going to introduce their bags into China; therefore, chance ishigh to improve the customer base. There are various segments of persons are residingbut, Louis Vuitton is targeting to young generation. Products of firm are much classywhich will attract youngsters towards them because these individuals always followtrends (Chen and Chang, 2011). As a result, firm will easily grow their business in Chinain an adequate way. Illustration 1: Population of China(Source: Miranda, 2015)2
GDP: It stands for gross domestic product, this is monetary examination of value ofmarket related to entire products as well as services which is manufactured in a specificperiod i.e. yearly or quarterly (Laufs and Schwens, 2014). With assistance of this,economic performance of nation will easily evaluated. In other words, it can also bemeasured through total cash fagged on investment (I), consumption (C), governmentspending (G) and in addition exports (Exports (X) – Imports (M)). Henceforth, it can be calculated by using formula which is mentioned as below:GDP = C + I + G + (X – M)As per research report, it has been found out that GDP of China is almost 11 trillion USD whichis high as comparison to France (GDP = 2.45 trillion USD). Therefore, this will be easy forcompany to introduce their goods in China. As gross GDS is very strong; thus, purchasing powerof people is high and they are maintaining their living standard effectually. Along with this,economic performance of nations is effective which help an enterprise to survive for long term atmarketplace.GDP per head: This can be calculate by using following formula:Gross domestic product / number of people in nationWith assistance of this, any country will compare their economic performance with other.If there is an increment in it then, there is enhancement in production of goods and services. Thiswill states that there is rise in standard of living of individuals. According to research paper,GDP per capita of China is almost 8,120 USD which is less as compare to France i.e. 36,850USD. Fundamental reason of this difference is population because populace of China is highaccording to France. Therefore, Louis Vuitton can easily export bags as this will aid to improvetheir market share. 3
Median age: It describes the age which classified people of nation into two equal teamsand in this, half is related with old individuals and other youngsters. In China, it is almost25 to 40 years. As people of this age group are much trendy and attract towards new andunique items. In France, it is almost 40 years; therefore, as organisation is going to exporttheir bags into China then, this will easy for them to capture attention of numerousindividuals. Henceforth, it has been understood that, if firm wants to export their business in China then, it isessential for them to comprehend economic of that nation (Stiebale, 2011). As a result, they caneasily provide their goods and services to people who are residing over there and help them toraise their standard of living (Maekelburger, Schwens and Kabst, 2012).Instead of all this, it is required for Louis Vuitton to conduct SWOT analysis for theirenterprise; therefore, they can formulate strategies for their business in an effective and efficientmanner. Strengths: This can be stated as below:Strong association to quality:Louis Vuitton is a luxury brand which is famous across theworld for their best qualitative items. Similarly, if client is paying high amount then, theyare more concern about quality. Certain standards are made by them and employees need4Illustration 2: GDP rate of China(Source: Trading economics, 2018)
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