Detailed Foreign Market Analysis and Export Strategy for Smart Watches

This report presents a comprehensive foreign market analysis focused on the potential for exporting smart watches to Saudi Arabia. The analysis begins with an executive summary and table of contents, followed by an introduction that highlights the current market segmentation based on features, style, and price. The objectives and scope of the study are clearly defined, setting the stage for a detailed examination of the Saudi Arabian market. The report provides an overview of Saudi Arabia, including its economic figures and demographics, followed by a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. A thorough market analysis is conducted, covering the political, economic, social, and technological environments, along with an assessment of customer behaviors and product demand. The competitive landscape is evaluated, identifying key players such as Samsung and Apple, and a competitive comparison is provided. The report also includes market segmentation and target identification, marketing strategies based on the 4Ps, and estimated budget for marketing communication activities. The report concludes with a summary of findings and provides references to support the analysis.

Running head: FOREIGN MARKET ANALYSIS
Foreign Market Analysis
University Name
Student Name
Authors’ Note

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FOREIGN MARKET ANALYSIS
Executive Summary
A smart-watch is a portable device which is designed to be worn on the wrist in a way
which is similar to that of traditional watches. Smart watches have touch screens, support
applications and often record the heart rate of individuals among other vital signs. Digital
watches being around for decades, the concept of smart watches is relatively new. It is
essential to assess the needs of individuals, the aesthetic taste as also the budget at the time of
the choice of smart watches.
South Korean smart watches are manufactured and favoured by several
manufacturers. In order to gain popularity from the different parts of the world there is the
need to export smart watches made in South Korea for gaining popularity. The smart watches
are extremely beneficial in terms of providing benefits to the users by showing important
notifications and reminding the users of any important tasks at hand.

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FOREIGN MARKET ANALYSIS
Table of Contents
1.1 Background:.........................................................................................................................3
1.2 Objectives:............................................................................................................................3
1.3 Scope:...................................................................................................................................3
2. Analysis..................................................................................................................................4
2.1 Overview of Saudi Arabia....................................................................................................4
2.2 Main Economic Figures of Saudi Arabia.............................................................................5
2.4 Business SWOT analysis.....................................................................................................6
2.5 Market Analysis...................................................................................................................7
2.5.1 Environment......................................................................................................................7
2.5.2 Customer...........................................................................................................................8
2.5.3 Product Demand................................................................................................................9
2.5.4 Competition.......................................................................................................................9
2.5.5 Price.................................................................................................................................13
2.5.6 Distribution.....................................................................................................................13
3. Comparative Market Choice................................................................................................15
4. Market Segmentation and targets.........................................................................................16
4.1 Segmentation......................................................................................................................16
Market Segmentation and Analysis:........................................................................................16
Marketing activities:.................................................................................................................17
5. Marketing Strategy...............................................................................................................18

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FOREIGN MARKET ANALYSIS
5.1 Generating Customer Value (4Ps).....................................................................................18
5.2 Marketing Activities...........................................................................................................19
5.3 Estimated Budget of the marketing communication activities..........................................21
6. Conclusion............................................................................................................................22
References................................................................................................................................23

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FOREIGN MARKET ANALYSIS
Introduction
The present scenario of smart watches is segmented in the market by the nature of
smart watches which are bought by the people namely Ultra-Premium, Premium, Standard
and Fitness and Wellness. The customers choose smart watches based on features, style and
price. A smart watch can also provide important information and notifications to the doctors
regarding the health condition of patients (Schaper et al. 2014). Smart watches are in tandem
with the modern day scenario and technologically advanced times.
Objectives:
The aim of this particular study is to understand the foreign market that is the
prospects for the export of smart watches in the country of Southern Arabia. The report aims
to create a proper marketing plan based on the conditions of the market and acceptability of
the product. The conditions in Saudi Arabia are to be studied in order to market the product
effectively and make the export procedure a success. The aim of the export of high end smart
watches is to gain a fairly significant market in the new country that is Saudi Arabia (Dawid
et al. 2017). The competition in the market needs to be analysed to succeed over the existing
competitors if any.
1.3 Scope:
The scope of the project report aims to clearly analyse the project planning which
involves the determination and documentation of a list of specific project goals. In this case it
relates to the analysis of the market. The report covers the analysis of the market in this case
the market of Saudi Arabia. The business analysis of the product export is to be calculated.
The need of smart watches in Saudi Arabia needs to be understood and the marketing plan
needs to be formulated accordingly (Agnihotri et al. 2016).

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FOREIGN MARKET ANALYSIS
Another important part which is included is the evaluation of the product in the export
market. In the present report, the actual need for the smart watches is to be understood in the
country of Saudi Arabia (Foxall 2014). The evaluation of the need of smart watches is to be
understood. The possible competition in the area needs to be understood and the promotional
activities of the watch also need to be looked into.
2. Analysis
2.1 Overview of Saudi Arabia
Saudi Arabia that is officially referred to as Kingdom of Saudi Arabia (KSA) is essentially a
self governing Arab state located in Western Asia comprising of the bulk of the Arabian
Peninsula. Essentially, with the land area of around 2150000 km2, the nation Saudi Arabia is
the largest state in Asia geographically and second largest state in the entire Arab world. The
nation Saudi Arabia is primarily encircled by Jordan as well as Iraq towards the north, with
Kuwait on the north east, plus Qatar, Bahrain as well as the United Arab Emirates (UAE) to
the eastern side, Oman in the southeast direction and Yemen to the southern side. In addition
to this, it is detached from the nation Israel and nation Egypt with the Gulf of Aqaba (Sheth
and Sisodia 2015).

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FOREIGN MARKET ANALYSIS
The nation Saudi Arabia possesses approximately 20% of the world’s proven reserves of
petroleum, positions as the greatest exporter of petroleum, and plays an important part in the
Organization of Petroleum Exporting Countries also simply referred to as OPEC (Armstrong
et al. 2015). The petroleum industry accounts for approximately 80% of budget revenue,
roughly 45% of GDP and 90% of export income.
2.2 Main Economic Figures of Saudi Arabia
Particular 2011 2012 2013 2014 2015
Population
(million)
28.37 29.2 29.99 30.77 31.52
GDP (in
billion US$)
671.24 735.97 746.65 756.35 654.27
GDP (for per
capita in US$)
20575.5 21056.3 21005 21183.5 21508
2.3 Demographics of Saudi Arabia
Population growth: The population of Saudi Arabia is approximately 33 335000
Population growth rate: 1.49%
Birth Rate: 18.78 births
Life Expectancy: 74.92 years
-Male: 76.89 years
-Female: 78.94 years
Rate of Fertility: 2.17 children that are born for every woman

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FOREIGN MARKET ANALYSIS
Infant Mortality: 14.58 deaths for every 1000
Structure of Age:
Age between 0 to 14 years: 27.6%
Age between 65 years and over: 4.2%.
Sex ratio:
At birth: 1.05 males for every female
People under 15: 1.05 male for every female
People between 15 to 64 years: 1.22 male for every female
Spoken Language: Arabic
2.4 Business SWOT analysis
Strength
-Largest Arab state with high GDP growth rate
and higher purchasing power that can provide a
good market base
-Innovative design
-Cost effective and simultaneously premium
quality (Foxall 2014)
Weakness
-Entry in a new market
-Initially low margin of profit (Sheth and
Sisodia 2015)
Opportunity
-Generating demand for superior quality product
-Generating higher job opportunities for people in
Saudi Arabia
-Altering customer requirements or else
Threat
-Acceptance of the company’s product in the new
market
-Swift change in technology
-Alteration in the needs of the customers

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FOREIGN MARKET ANALYSIS
preferences (Agnihotri et al. 2016)
2.5 Market Analysis
2.5.1 Environment
Political Environment: Saudi Arabia formally referred to the Kingdom of Saudi Arabia can
be regarded as the largest Arab state in terms of area of land. Essentially, the Kingdom of
Saudi Arabia is necessarily a monarch that is governed by King Abdullah. Fundamentally,
this nation is ruled by politically stable and undergoing political restructuring although in a
slow speed (Foxall 2014).
Economic Environment: The economy of Saudi Arabia behold appropriate rate of growth
and is anticipated to arrive at higher rate of growth in the upcoming period. The nation’s
economy is referred to as high income and can be considered to be the largest one in the area
of Middle East. It can be hereby mentioned that Arabia has a specific edge with strong
economical strength as well as weak opposition pattern (Sheth and Sisodia 2015). Yet another
issue of the nation is an unbalanced association between the public and the private sector
remain together.
Social Environment: The Al Saudi Family asserted that they are committed to uphold the
nation’s economic growth and be a part of the developed countries. In contrast, this political
situation necessarily affects the industry of smart watch positively as this specific industry
remains majorly uncontested in the market of Saudi. In particular, in terms of law, al smart
watch industries have the need to possess single as well as family section with segmentation

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FOREIGN MARKET ANALYSIS
of male and female segment delineated in order to adhere to the tradition as well as religious
necessities (Armstrong et al. 2015).
Technological Environment: Presently, Saudi Arabia is necessarily turning out to be more
focussed on technology. The expenditure on nation’s connectivity as well as human resources
has been enhanced. However, with the ever increasing growth of private sector, systems with
advanced as well as innovative technologies are being established (Hollensen 2015). Proper
efforts are also put in order to make IT an integral section of the Saudi Arabian education
system.
2.5.2 Customer
Behaviors
1)Target Segment Name: Trendy Sportsperson and athletes
Percentage: 23%
Demographics - 15-29 years, single, male/female
Behaviours: Educated secondary school and above.
2)Target Segment Name: Evolving Juniors
Percentage: 22%
Target Segment Name: Balanced Seniors
Percentage: 21%
Target Segment Name: Medical or elderly education
Percentage: 11%

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FOREIGN MARKET ANALYSIS
Target Segment Name: Women for the purpose of safety
Percentage: 10%
Target Segment Name: Travellers or adventurers
Percentage: 14%
2.5.3 Product Demand
The smart watch market can be said to be in nascent stage, despite elevated attention from the
technological giants to carry out the wave of technology innovation. There are several
barriers to particularly mass adoption.
Price: In essence, no clear value proposition is there for justification of a high point of price.
Look: Inadequacy of fashion appeal in a bid to undertake customer adoption.
Eco-system associated to app: Restricted separate apps and this limits functionality (Steck
and Tan 2016).
Smart watch continues to be a challenge due to different product classification that
necessarily cater to diverse niche areas that are sports, automotive as well as fitness and ,any
others (Verhoef et al. 2017). Analysis of smart watch market reveals that there is impressive
approximated market size growth. It can be estimated that smart watches reflect only 3% of
the total customer electronics expenditure by the year 2018.
2.5.4 Competition
As smart watches can probably be decoupled from present mobile devices, therefore, it is not
expected that various smart phone makers of 2nd tier or else other autonomous brands can
might emerge and compete with companies such as Apple as well as Samsung (Angell and

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FOREIGN MARKET ANALYSIS
Kraemer 2015). Essentially, it can be believed that Samsung as well as Apple can continue to
rule the space of smart watch. The main competitors of smart watch in the market of Saudi
Arabia include:
- Samsung Galaxy Gear:
It established the first and foremost foray of particularly the big four into this specific
wearable tech space. Essentially, in the initially the Samsung Galaxy Gear is now compatible
with different other Samsung instruments namely Galaxy S4, Galaxy S3 as well as Galaxy
Note II (Porter and Heppelmann 2015). In essence, the company announced that shipments of
the Galaxy Gear crossed the mark of 800000 in the initial 2 months of the establishment of
the instrument.
Advantage and disadvantages:
Sony Smartwatch 2:

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FOREIGN MARKET ANALYSIS
This marked the third attempt of the company Sony into the space of wearables that suffers
from majority of the drawbacks that also afflicts their peers
Advantages and disadvantages:
The Pebble Smartwatch:
This company provides a tailored as well as Bluetooth enabled product that again can
wirelessly connect to the users of the phone (Morrison et al. 2015). Essentially, the pebble
smartwatch acquired popularity by means of huge success of the Kickstart campaign in which
the project rose over approximately $10 million in around 37 days.
Advantage and disadvantages:

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FOREIGN MARKET ANALYSIS
Competitive Comparison
The export company intends to follow sustainable competitive benefits:-
-Use of advanced German technology, level of proficiency as well as reputation of the firm
-Superior quality smart watch made available at a comparatively moderate price
-Elegant as well as use of ergonomic style
-Dedicated German workers (Chuah et al. 2016).
-Superior skills of marketing
Main beneficiaries can help in carrying out competitive comparison. The key beneficiaries
primarily from the smart watch notion helps in understanding the smart watch models.
Essentially, models of smart watch vary in various types of components utilized, and this
subsequently rely on the overall functionality as well as price of the instrument. Nevertheless,
main enablers of this specific wearable tech for example, BLF as well as sensors can be

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FOREIGN MARKET ANALYSIS
considered to be ubiquitous in different wearable instrument (Park et al. 2016). Therefore,
diverse connectivity players that is to say, (BLF plus WiFi) essentially stand to acquire
advantage from the proliferation of diverse wearable instrument as well as smart watch in
specific.
Furthermore, tracking fitness along with health monitoring can be considered to be main
characteristics to any kind of smart watch. Therefore, it can be said that different sensor
players (such as Murata, Rohm as well as Alps) can acquire good business chances in this
specific area (Choi and Kim 2016).
2.5.5 Price
The management of the company intends to undertake penetration pricing for the business of
export of smart watches in the novel market of Saudi Arabia. Essentially, penetration pricing
refers to a specific marketing stratagem that is utilized by corporations for the purpose of
attracting several numbers of customers to novel products or else service. As such,
penetration pricing can be regarded as the exercise of mainly offering low prices for different
new products else wise service during initial offering in a bid to lure consumers away from
rivals (Sayoon et al. 2015)
The pricing strategy that the administration of the firm intends to implement can help in
reducing the total number of rivals of the firm by around 10%, utilizing a strategy of
penetration pricing. In this case, pricing strategy can be adjusted for being directly
competitive with many other competitors.
2.5.6 Distribution
There is increasing interest in smart watch over the last few years that in turn have led to
greater number of players entering into the segment of smart watch ring. The smart watch as

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FOREIGN MARKET ANALYSIS
a specific category of product necessarily includes two distinct planets- technology as well as
fashion. In particular, each one of these segments necessarily possess own channels in order
to arrive to customers (Brown et al. 2017). Primarily, distribution channels is necessarily
referred to as a complete set of self-determining corporations engaged in the procedure of
manufacturing product/service that is available for use or else consumption by customers or
industrial users. The distribution channels that can be used on this case include:
-manufacturers marketing directly to the customers
-Manufacturers marketing to retailers and thereafter retailers to the specific customers
-Manufacturers marketing to specific wholesalers that again sell products/service to the
retailers that again market to customers (Gruenerbl et al. 2015)
Direct:
Selling directly to several consumers can be considered to be simple along with profitable
option. The management of the exporting firm can consider savings that the firm can earn by
means of selling direct to the customers or simply enhance the profit margins (Reeder and
David 2016).
Retail Distribution:
There are large retailers do not want the disturbance of handling thousands of several
individual suppliers. However, in place of that, the retailers mainly prefer to purchase by
means of large distribution corporation that aggregate company’s products from several
numbers of suppliers and then chiefly intend to make the inventory available to various
retailers for the purpose of purchase (Reeder and David 2016). In essence, these kinds of
distributors take a certain proportion of the sales that necessarily pass through factories.

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FOREIGN MARKET ANALYSIS
3. Comparative Market Choice
On the basis of the graph, Smart watch adoption rate in the countries of the world it is clear
that Spain is the country which adopts smart watch most in the world. Spain is followed by
Italy. It is also clear that the percentages of the population of the mentioned countries are
more or less comparative (Chuah et al. 2016). The countries like Japan, New Zealand, United
Kingdom, Germany, Austria are more or less comparative in terms of their smart watch
adoption rates in the world. There is a significant adoption rate in the Asian countries as well
as in other countries of the world.

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FOREIGN MARKET ANALYSIS
4. Market Segmentation and targets
4.1 Segmentation
Market Segmentation and Analysis:
The market segmentation and analysis of the Smart Track aims at understanding
which segments of the population the product is applicable to. In case of the smart watch
market segmentation the categorisation can be done by type of product, by application of the
product in different scenarios and also by operating systems (Kim and Shin 2015).
There are three basic types of smart watches namely the extension smart watch, the
classic smart watch and the standalone smart watch. By the applicability of the watch it can
be mentioned that the wellness, the medical and health, the sports fields and other aspects can
be categorised (Huang et al. 2016). In terms of geographical or topographical areas, the areas
of North America, Europe, Asia Pacific and LAMEA are the areas in which they are to be
divided.
Market Overview:
The global smart watch market is expected to garner an amount of 32.9 million
dollars by the upcoming couple of years during the period of 67.6%. The market for the smart
watches is witnessing a double digit rate globally. There are several brands which are
responsible for being the top competitors in the market of smart watch adoption in the world
(Kim and Shin 2015).
The global market analysis:
The smart watch market has gained a significant momentum in the recent times due to
the entry of several major players in the smart watch market. The most important suppliers

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FOREIGN MARKET ANALYSIS
are those of the global superiors of Samsung, Sony and Apple. The most smart watches are
available in the market work at present in terms of large number of smart phone users. The
companies who are responsible for manufacturing of smart watches are customising their
respective operating systems and for the use in the wearable devices.
The smart watch market analysis provides a detailed analysis of the several categories
of the smart watches. It is also detective of the analysis of the industry drivers, the restraints,
opportunities and the market trends. The key players of the market help in analysis of the
market share which are suitable in the market plan (Dawid et al. 2017). The emerging
industry trends in terms of the smart phone users and the smart watch customers is analysed
properly which helps in the creation of the marketing plan.
Marketing activities:
The usual customers at whom the target market is aimed at comprise of the young
generation and basically those who are concerned about their physical fitness. It is necessary
to create advertisements of the Smart Track watch with major amount of focus on the
innovations. The target group of the youth should be focussed on and the characteristics of
the watch which pertain to the youth have to be highlighted.
In the advertisements the store locations and the places where the brand intends to
expand their stores are to be analysed. The advertisements should also mention the
accessibility of the locations. For this a proper study of Saudi Arabia and its locations need to
be understood (Agnihotri et al. 2016). The exported watches need to be distributed properly
and this is bound to help in the sale of the products. These factors should be kept in mind
positively while promoting Smart track.

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FOREIGN MARKET ANALYSIS
5. Marketing Strategy
5.1 Generating Customer Value (4Ps)
Product:
 It is watch that is a style statement
 It is watch that can take care of both parents and grandparents
 It is a watch that can aid women in their safety
 and more (Sheth and Sisodia 2015)
Therefore, it can be said that smart watch can be considered to be a multi-performance watch
that has a touch screen facility and has exclusive characteristics for example, health
orientation along with fitness tracking capacities since it is assimilated with diverse other
services as well as products. Essentially, it is wirelessly connected to carry put functions such
as texting and calling from the smart watch.
Pricing
 The management of the firm intends to follow a penetrating policy of pricing
 It is a one-time investment for several years
Penetration pricing can be used for the particular product for gaining higher share of the
market. Essentially, this policy of pricing can help the company to gain competitive edge
over other rivals from the perspective of pricing. The availability of product at affordable
prices can help consumers to make purchases and enhance sales (Steck and Tan 2016).
Promotion
 In different hospitals
 Posters as well as banners

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FOREIGN MARKET ANALYSIS
 Newspapers and television
In this case, the promotion can be properly spearheaded by way of maintenance of public
relations owing to lower level of cost and thereafter by means of advertising just the once the
corporation starts to enhance flow of cash to an acceptable limit (Steck and Tan 2016).
Place
 In different mobile outlets
 In diverse online megastores
 Shopping malls
 In hospitals (Steck and Tan 2016).
5.2 Marketing Activities
The important marketing activities include advertising on different channels. Marketing
strategy can be considered to be a specific technique that is utilized to make the public of a
corporation and things the company has to deliver over other competitors (Sheth and Sisodia
2015).
Search Engine Marketing
The management of the firm intends to utilize search engine marketing. Developing a website
that can remain on the top on search engines can be considered a way of marketing. In case if
a customer is searching for the product smart watch for which there are several number of
suppliers, then the customers might just type the keywords in the search engine and get the
results (Sheth and Sisodia 2015). The company can develop and frame websites and infuse

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FOREIGN MARKET ANALYSIS
the same with the keywords plus phrases in order to maximise the ranking of the search
engines and garner the highest number of enquiries of the customers.
Placement of the product in the area of entertainment
Moviegoers as well as online players of game primarily take note of products from a specific
part of the scene. Corporation necessarily can make payments for the privilege (Armstrong et
al. 2015). Essentially, they provide consent to the system of payment for several marketing
advantages.
Trade Shows
Particularly, management of the company can primarily look for retailers to carry their
product. Essentially, trade shows can be considered to be a specific business to business form
of marketing. In this, administration of the firm thinking about exporting products to Saudi
Arabia can purchase spaces and sell diverse units of a specific item, at times to reach to
particular members of the public as well as retailers (Armstrong et al. 2015). Again, even if
industrialists do not get adequately impressed at a specific trade show, then the total number
of units that are sold to everyday customers might be adequate to convince retailers to stock
the entire product.
Packaging Strategy
The management of the exporting firm can analyse whether system of packaging march the
strategy of positioning of the company. Essentially, the management of the firm can also take
into consideration the way the system of packaging can communicate key value propositions
of the firm (Armstrong et al. 2015). In addition to this, administration of the firm can also
carry out comparisons with the competition.
Public relations:

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FOREIGN MARKET ANALYSIS
The administration of the exporting firm can get the media can cover the products/services in
an appropriate manner in order to arrive to the target customers. Essentially, gaining a
prominent opinion of product/service can deliver the exposure that is required to develop the
business (Hollensen 2015).
Content Marketing:
A popular stratagem for the purpose of promotion can be considered to be very engaging in
mainly content marketing. Essentially, content marketing can be used by the management.
This involves teaching as well as educating various prospects of the product/service that the
exporting firm intends to deliver (Hollensen 2015).
5.3 Estimated Budget of the marketing communication activities
The growth of the export business of the company to Saudi Arabia can be supported by the
flow of cash as well as investment of owner. In essence, this will help in maintaining slow
rate of growth and manage and can allow the entire management to have entire complete over
the entire firm.
The financial plan of the company depends on important assumptions and these suppositions
include:
-Adequate accessibility to capital
-Steady financial system of the nation without recession
-No drastic alteration in technology (Hollensen 2015)
General Supposition regarding the start up fund requirements of the business:
Start up Fund

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FOREIGN MARKET ANALYSIS
Start up Expenses
Legal $20000
Stationary $500
Brochures $3000
Business Consultants $10000
Insurance Expenses $10000
Expends on Rent $20000
Expends on Research and Development $10000
Expense on equipment $10000
Other $7500
Total Start up Expenses $91000
6. Conclusion
The export firm intends to serve the new market of Saudi Arabia and provide niche market of
the entire watch industry. Essentially, this can help in capitalizing on particularly the
engineering and manufacturing techniques used for the purpose of developing the advanced
watches. However, there are numerous potential market that intend to have superior quality
products, Saudi Arabia is also one of those markets. However there are high GDP rate of
growth and higher purchasing power of individuals in the nation. Therefore, the desire for the
high end product can be backed by the purchasing power of consumers. Therefore, it can be
hereby stated that people in the newly identified market can also afford the high end and
technologically advanced product.

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FOREIGN MARKET ANALYSIS
Group Discussion Questions
Module 1: Solution to Question 1
The video explains about the effect of globalization, bilateral trade between China and US on
both the economies. Since the outbreak of the worldwide financial crisis during the period
2008, the influence of economic globalization has become a double-edged sword that has
become more understandable. On one hand, the global flow as well as distribution of diverse
components of production has certainly lessened costs, enhanced efficacy and further
augmented overall productivity, but on the other hand, it has aggravated the overall global
economic imbalance and widened the gap that exists between economies (Hair Jr and Lukas
2014).
The given video reflects that American corporation produce many of their produce there in
China, sometimes 100% or other corporation manufacture parts or else certain specific
ingredients of their products. For example, the US based company Briggs &Stratton
dislocated workers and this led to job losses of people who used to manufacture engines at
the Briggs &Stratton plant positioned in Rolla Missouri. Therefore, business concerns
outsourced their production for obtaining labour at lower costs that subsequently led to loss
of employment in the US.
There are ways of averting the unfavourable position of replacement of high tech workforce
being replaced by the cheaper workforce.
Module 1: Solution to Question 2
American Furniture Company at the time of selling their products in particularly China
includes selling products to anybody. However, there exist issues with the balance of trade
between particularly China and the United States. Americans also make more purchases

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FOREIGN MARKET ANALYSIS
from China. The products are produced at low cost by disbursing low salaries. This implies
higher level of efficiency and this boosts the bottom line of the company (Chaffey and Ellis-
Chadwick 2016). The label of assembled in China also brings in huge savings and it is the
company’s marketing strategy that inspires their consumers.
Module 2: Global Customers
Part A: Question 1
Investment climate is enhancing as financiers are also growing. Countries are also
consciously attracting foreign direct investment (FDI) that in turn is making the investment
programs very much pro-business. There is high rate of inflation, devaluation of currencies
and government policies that do not also make the place pro business. However, there are
several number of family businesses and it is a specific region that calls for the need of
personal contact with prospective partners-suppliers-buyers and physical presence (Babin and
Zikmund 2015). Nonetheless, previously Latin America known as world’s biggest resources
of the world was also a leading exporter of sugarcane and coffee. It was well known for
export of agricultural commodities. Now observing the rest of the emerging markets in Latin
America are very much expensive and this is why they intend to trade more with the rest of
the world.
Part A : Question 2
Middle East that is a commercial center delivers easy admittance to the products of diverse
Latin American products. Heightened trade activity is also essentially driven and directed by
the Middle Eastern investment strategies towards emerging markets (Sheth and Sisodia
2015).

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FOREIGN MARKET ANALYSIS
Part B: China’s retail business goes digital
Increasing digitalization makes Chinese market more accessible to foreign corporations
Digitalisation has the prospective of empowering the overall business chain and the ones
looking to get a head start also stand to acquire advantage in the upcoming future (Strauss
2016). Traditional models of business as well as value chains are necessarily challenged since
digitally performed actions permit for enhanced availability, lesser lead times, quicker time-
to-market along with lower costs of transaction. Particularly, this translates into chances for
low costs, permitting for smaller firms to compete with established firms and brands.
Digitalization and globalization
Digitalisation together with globalisation helps worldwide business on an international scale.
This necessarily refers to opportunities for particularly sales to customers globally. On the
other hand, to overseas firms this helps sales in the home country. In this case both domestic
as well as internal competition gets toughened as the home country becomes an important
part of the global market. From the perspective of internationalisation, both marketing and
sales actions are important (McDonald and Wilson 2016). Essentially, digital channels along
with tools permit customer sections in various new markets that can be reached at
comparatively lower costs as compared to conventional set-ups.
Question 2: Examining whether Chinese internet companies will
become global
Chinese corporation that rule in their domestic markets have now become flush with cash,
and these firms have become eager to stretch influence overseas to prosper more than their
competitors.
Module 3: Global Marketing Information Systems and Research

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FOREIGN MARKET ANALYSIS
Yes, certainly it is rightly indicated by Steve Jobs that market research can help in
understanding perceptions of customers regarding the thing that is shown to them or else can
talk about what the customers want as an enhanced improvement. However, market research
cannot help in predicting and forecasting something that customers are not aware of
(Andrews and Shimp 2017).
Module 4: Segmentation, targeting & positioning
Psychographic segmentation: Porsche customer in the U.S.A.
Psychographic segmentation of Porsche:
-Fantasists
-Proud Patrons
-Elitists
-Top Guns
-Everyday users
-Bon Vivants
It can be agreed that Psychographic segmentation can help in understanding the
psychologically variant motives behind purchase intention (Babin and Zikmund 2015)
Porsche is a luxury car and is a high end products targeted at premium clients. However, the
market segmentation of Volkswagen ought to be different as affordability along with other
facets such as ingenuity, performance and reliability makes the .product attractive to large
segment of clients.

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FOREIGN MARKET ANALYSIS
Module 5: Competitive analysis & strategy
Assessment of the strategy of Tesla
Telsa believes in making people understand the company, their cars, value of the cars that
they offer and thereafter want the same. The management of the company also believes in
treating clientele well as developing strong customer relationship and maintain both physical
and online presence (Babin and Zikmund 2015). The administration necessarily does not
want to dicker on the product’s price.
Recommendation for changes if any
The management of the company might consider setting up franchises as Tesla does not
follow a franchise dealer model, just as other automotive firms counting Ford also follow.

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Michael Porters’ Five Forces
Module 6: Product decision and pricing
New Product Development
The new product idea of Geminoid is very attractive that is essentially a tele operated android
that is identical to the original person. This idea will incline me the most (Babin and Zikmund
2015).
Topic: Pricing a can of Coca Cola
Unrelated product with at least four to five different price levels
Another unrelated product is Hololens that helps in seamlessly blending particularly high-
definition holograms with essentially the real world.
The introductory price of this new product ranges between $3000 and $5000 for mainly
commercial suite. This wide range of levels of price ($3000 to $5000) permits the seller to
market products at different levels of prices founded on the customer that is buying the
product. Certainly the features of the products also vary with different levels of price.
Module 7: Global Marketing channels and communication

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FOREIGN MARKET ANALYSIS
Measuring Performance
Poor performance measurement is possible and way it can be linked to global
marketing
In essence, it is important to design an appropriate tool for measurement of performance
along with systems so that their corporations can attain their own exclusive set of objectives.
Again, this is a huge challenge, just like a basket ball coach supply chain managers also have
the need to recognize and enhance the overall weakness of the entire team. A performance
measurement system refers to a strategic scheme along with strategic goals together with
actions that helps in enumeration of final performance. However, effective performance
measurement can help in improvement. In case if the performance does not get improved and
processes fail to attain measurable gains, the performance measurement system can be said to
be poor. International marketing function also delivers a specific opportunity for a specific
employer to discuss about correcting issues about performance (Baker 2014).
Module 8: Foreign Market Entry Modes
Examination and description of resistance Nestle has encountered
in certain markets
Nestle has around 447 factories throughout 194 nations that employs around 333000
individuals. As per the International Baby Food Action Network (IBFAN), the company
Nestle utilized unethical mechanisms to necessarily promote infant formula to all poor
mothers of developing nations. In addition to this, the company also encountered resistance
owing to the false claims that it previously made that their powder milk is equally effective as
mothers’ milk.
For example, the baby formula can be considered to be a sad story as regards poverty and
greed. As such, Nestle aggressively pressured the company’s breastfeeding formula in less
economically developed nations, particularly targeting the poor. They made it appear that
their infant formula was almost as good as a mother’s milk that is highly for several reasons.

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FOREIGN MARKET ANALYSIS
Essentially, majority of the groups that the company was targeting was particularly in Africa
and did not necessary have access to proper and hygienic water, therefore it was essential for
them to intake boiled water. Nestle ignored all the circumstances and inspired mothers to
utilize formula even after knowing risks (Baker 2014).

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FOREIGN MARKET ANALYSIS
Module 9: Industrial Marketing
Question 1
Way Cisco transformed marketing strategy to focus on customer
needs
The management of the firm started to explore the target customers of the firm. Also,
administration and the decision makers of the firm started thinking about market
opportunities, growth of business, superior customer experience regarding price/earnings.
Even after considering these factors the management of the firm took into account specific
information and understood different kinds of marketing tools (Hair Jr and Lukas 2014).
Furthermore, management of the firm also took into account tactics that these diverse folks
necessarily respond to and comprehend their care regarding programs and specific contents
around the same.
Question 2
Yes, I agree to the proposed changes. The focus was shifted to mainly anticipated business
challenges and this was very much business focussed. This can lead to development of the
business.
Module 10: Global Organization and leadership
Customer engagement can be considered to be a business communication that talks about the
connection between external stakeholders as well as organization by means of diverse
channels of communication (Chaffey and Ellis-Chadwick 2016). In essence, this connection
can be regarded as a reaction, impact and interaction with customers that occurs both online
or else offline. The management of the firm Tesco Plc proudly engages in customer
engagement and has a customer engagement center. This necessarily intends to sort out
different queries that the company’s shoppers might possibly have regarding club card, Tesco

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FOREIGN MARKET ANALYSIS
Direct Products or else regarding overall quality of customer service in Tesco’s stores. The
company also has the prospect to remain engaged in different aspects of what the company
offers to its clientele. Thus this can help in specialising in identifying the opportunities of
serving customers in better way and improving manner of working, systems as well as
procedures providing faster as well as simpler solutions for the colleagues.

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FOREIGN MARKET ANALYSIS
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