Global Market Analysis: Sri Lanka, China, and India

Desklib provides solved assignments and past papers to help students succeed.

MKT550 - GLOBAL MARKETING - ASSESSMENT ITEM 2 - MARKET ENTRY AND
STP STRATEGY
1

Table of Contents
Introduction......................................................................................................................................4
Assessment 2...................................................................................................................................5
PART 1............................................................................................................................................5
PART 2..........................................................................................................................................11
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
2

Introduction
Global marketing is termed as the process which focuses on adjusting the strategies of marketing
in accordance with the countries and also focuses on adapting the same. It means targeting the
market and consumers which are globally present focuses on achieving the goals and objectives
of BLK Sport wear. BLK Sports is famous sports apparel manufacturer who is putting emphasis
on increasing the market entry and applying the STP strategy to achieve the success in the
company. It focuses on market segmentation, targeting and positioning strategies which tend to
create impact in the BLK Sportswear. It has involvement of strategic approaches which focuses
on market segmentation which can be B2C market. BLK Sportswear operates their business in
Australia and targeting the other countries in which they are targeting the consumers and markets
as well as. It will help in determining the global market which and gaining the knowledge of
different strategies which have created the impact in economy and at the same time focus on
generating maximum productivity.
3

Assessment 2
Market entry and STP Strategy
PART 1
Market entry is the huge perspectives which are needed to be taken into consideration by the
BLK Sportswear before targeting the other countries and planning for the expansion of the
business. Market entry is considered as the strategy which is planned distribution of goods and
services within the new target market and it basically focuses on the import and export of
services. It is in the form of creating the product which are in accordance with that country’s
individual’s demand and also focusing on the management of contracts in the other country. The
businesses have to focuses the factors which involves potential customers, competitors, trade
barriers, pricing strategies, export subsidies etc. BLK Sportswear are focusing on entering in the
new markets for the business expansion requires to check the requirement of product in the area,
barriers which affect the business and operates the business in proper manner. BLK Sports is a
famous athletic apparel manufacturer of Australia which provides high standard products to the
users. They provide clothes for each age group individual with premium quality. With a good
name in Australia, the company is targeting the Asian market as well. BLK Sports is now
entering in Sri Lanka for which they want to assess opportunities and complete brief of the
country (Shao & Yang,2019).
It is basically focused on the import and export of the company in order to run the business of
company in the long run. There are some of the common market entry strategies in the market
which helps in setting up an entity in the market and run the operations which includes licensing,
joint ventures, franchising, outsourcing etc. which may affect the business in the near future.
BLK Sportswear has decided to expand their business in the new market and in accordance with
that they have targeted the 3 countries which are as follows:
Sri Lanka
BLK Sportswear for the process of business expansion has the requirement do the market
analysis which will ease the things for the company in order to commence their operations in the
4

Sri Lankan market (Iyer & Paswan,2019). It has been observed that Sri Lanka has been
performing well in the economy in accordance with the policies and rules and at the same time
government intervenes too which have created the policies which are way beneficial for the
business. BLK has successfully running their operations in Australia in effective manner in order
to regulate the business activities which can generate effective returns in the other countries.
Advantages of pursuing business in Sri Lanka
Foreign Direct Investment: The commencement of business is Sri Lanka will generate the
highest amount of returns as the introduction of foreign direct investment policies.Sri Lankan
government has proposed the plan for the year of 2025 which focuses on strengthening the
democracy, government intervenes etc, which will acts as a map to finish the work and achieve
success. In the year of 2017, Foreign Direct investment in Sri Lanka has grown over $1,1710
billion which have inclusion of foreign loans and providing the returns which are double than
the last year.
High Performing market:Sri Lanka is considered as the 60th most productive country in
accordance with the GDP and also per hour worker which requires (6.85 USD)Sri Lanka
nowadays is considered as the suitable option to invest and achieve the results regulates the
business in the long run. Sri Lanka market has been upgraded in the terms of stock market has
achieved the heights in order to attain the success in the company.
Inhabitants: Sri Lanka has the population of approximately 2 crore which shows that there is an
annual change of population is 1.1 % in Sri Lanka. This implies that the population in terms of
sports are also reaching the heights which show that it’s a good sign for the company to
commence their business operations in Sri Lanka and achieve their goals and objectives in the
long run. According to the researcher demographics of Sri Lanka has inhabitants which are
Tamils and Sinhala and majority of the people belong from the age group of 25 years to 54 years
which provides the platform for the companies to expand their business.
Disadvantages of pursuing business in Sri Lanka
Foreign Exchange: It may termed into a situation of huge loss as the currency of Sri Lanka is
much cheaper than other countries which are the part of Asia which showcases the situation of
5

loss in exchange of every import and export services which are carry forward by the BLK
Sportswear in order to commence their business operations.
Tax Revenues: It describes that the tariff will be removed from the various products which will
result in the loss of revenue and which in return affect the Sri Lankan market and at the same
time business too. The government of Sri Lanka has increased the tax rates which will acts as a
barrier and describes the situation of loss too.
Economic non-viability: The business of BLK Sportswear will become the part of Foriegn
Direct investment which will termed as capital intensive from the view point of the investors
which might lead to the situation of risk which can create impact economically.
 Reasons for adoption and discarding India for business
Sri Lanka is the suitable source for pursuing the business and targeting the market as it is
more productive and provide high amount of returns in the same manner.
The revenue in terms of tax, tariffs which becomes a crucial source of regulating the
business as it will affect the import and exports of the business.
China
The business men are always fantasized about entering in the market of China to commence their
business and attain the heights in business which they are looking forward for. China is
considered as the one of the country which has largest unified economic spaces which shows that
businesses are flourishing and the consumers are always rising which shows that purchasing
power is high and businesses are uplifting. There are a various factors which attracted the BLK
Sportswear to commence their business in the china is growth opportunities, fame and as well as
fortune which will help them to achieve their goals and objectives (Ritter & Lettl, 2018).
Advantages of pursuing business in China
Emerging trends and Fashion Influence: The market of china has been changing significantly
which shows that there is a shift in the western influence and the growth in terms of international
sportswear has been gradually increased which provide the platform the huge opportunity for the
sports brands to commence their operations in China and achieve the success. The American
6

influence has significantly changes the mindset of people of china which is huge platform for
BLK sports to pursue their operations (Shao & Yang,2019).
Government Intervenes: The changes which have taken place in the Chinese culture and the
economy which has major inclusion of the government as they play major important role and
aside their focus on the sportswear industry. The government has made policies in the year of
2014 which has clear vision of increasing the foreign direct investments and as well as domestic
person who are in the business of sportswear will have the chance to increase their business in
the long run.
Disadvantages of pursuing business in china
Difficulties in market entry: Indulging in the local market and having a dominance in the
market is one of the crucial task as China’s local dealers are supplying the quality products as
which tends to declines the chances of BLK Sportswear to get successful in order to generate
high amount of returns. On the other hand the government of China always provide preferences
to locals over the other brands that are entering into the market (Ritter & Lettl, 2018).
Lack of Intellectual property involvements: China has remained the hub for the difficulties
which arises in relation with the intellectual property rights which has cost fortune to the
business owner. The effect in terms of the intellectual property is high in nature and there are
people who duplicate the authentic products and produce the piece of counterfeit products which
creates huge amount of loss to the brands like BLK Sportswear.
 Reasons for adoption and discarding China for business
China has always been the market which attracts major population as it tends to provide
more growth opportunities and a platform which tends to helps attain the desired amount
of success and generate the outcomes
The reason for discarding the China is local market has major market dominance which
creates the problem in the working of BLK Sportswear.
India
India has been shown as hub for the sports apparel these as people are more towards the
sportswear which has given rise to the brands and they achieved the heights in their business.
7

The hype in the economy which has changed the preferences in terms of lifestyle which has
inclusions of Indian consumers which are becoming more and more fitness enthusiastic which
are benefitting the sportswear industry in India which provides the huge opportunity for BLK re
Advantages of pursuing business in India
Indian Consumer: The modern Indian consumer has changed over the time and they have
drawn towards wearing the sportswear market has been increased as compared to previous one as
they have understand the importance of wearing gear. To keeping up with the evolving needs and
demands of customers it is suitable opportunity to for BLK Sportswear to target their market in
India as they have the opportunity to grow their business in the long run which will provide them
benefit in the long run (Iyer & Paswan,2019).
Growth Drivers: The India concludes of versatile industry which shows the massive changes in
the lifestyle and how it is creating impact in the life of other people. In terms of sportswear
market which has been changed massively due to the emergence of pop culture icons which has
given rise to sports culture and at the same time provided the opportunity for the Sportwear
brands to commence their business operations in the economy. BLK sports wear has huge
opportunity to increase their business and drive the necessary amount of growth in order to attain
success.
Disadvantages of pursuing business in India
Competitors: In India major portion of the Sportswear industry is mainly dominated by the
brands like Under armour, Puma, Nike etc. which acts as rival for the other companies who try to
enter in the market of India which in return changes the buying behaviour. The Sportswear
industry has existing in India from a longer duration which provides challenges to the other new
brands to pursue their business in the Indian market (Dey & Zhang,2014).
Inference: Indian consumer’s mindset is more drawn towards the buying of clothes which has
quality and has different behaviour towards purchasing of sportswear products. Indian customers
are liked to be associate with brands who have market value rather than giving importance to any
other brand or company who is just entered in the market and commencing their operations.
 Reasons for adoption and discarding India for business
8

The India economy has always forward towards the sportswear and been a promoter of
sports in every aspects which provides platform to pursue business in India and go for
every possible factors which acts as a step towards the attainment of success.
The BLK Sportswear should not consider India as their target market to enter into and
commence their business operations as the company has to major amount of rivalries
which lessens the chances of business to flourish and attain heights in the business.
In accordance with the above mentioned information by analysing the three target market it has
been concluded that Sri Lanka is the suitable match to commence the operations of the BLK
Sportswear in order to achieve the growth of the company and attain the goals and objectives
which will contribute in the betterment of the business in long run. Sri Lank has major amount of
positive factors which are beneficial for the business and helps in generating desired results
(Song & Wei, 2019).
9

PART 2
Market Segments
Market Segmentation is considered as the process which involves dividing the potential
customers into the groups which includes different set of segments which are particularly based
upon the different preferences and demands of the consumers and in accordance with those
products has been provided. These segments are created by number of consumers which are
made by BLK Sportswear are considered as marketing which focuses on generating the business
to achieve the high amount of returns. In this we have selected the B2C market as Sri Lankan
fashion industry which majorly dominates the market that is the reason it will benefit the BLK
sportswear to commence their business operation in the Sri Lanka and attracts the customers to
generate the maximum amount of sales. The major reason for choosing the Sri Lanka country as
the country has major growth opportunities which contribute in the betterment of the company
and provide the business to get benefits from the foreign direct investments and government
policies which are uplifting the market in every other manner. The ongoing increment in the
population and their involvement in the GDP has created major hike in the company’s process.
On the other hand Sri Lanka will major benefit in terms of Foreign Direct Investments is
providing huge benefit in terms of international business and returns will provide the benefits to
the BLK Sportswear (Bian & Bai, 2019).
B2C is considered as the best process to pursue the business and selling of products of the BLK
sportswear to the consumers who are final users of the product. BLK Sportswear business is
mainly customer oriented company which put emphasis on the consumer’s preferences in order
to generate the business. The Sri Lanka’s market analysis showcased the opportunities which
require efficiency in actions in regards with generation of business.
Target Market: The Sri Lankan market has provided the information in the terms of targeting
the market will be people who are in age group of 19 to 25 years and more drawn towards using
the sportswear and fitness enthusiastic (Shao & Yang,2019). The trends have affected the Sri
Lankan economy which has created huge impact in apparels and as well as on export industry
which are reaching to the heights providing a map in which can lead to the attainment of success
in every possible manner. The main target for sportswear is young generation as they are people
10

who walk in accordance with the emerging trends and fashion and tends to buy the things which
depict their style and at the same time provide profit to the BLK Sportswear. The working
population is helpful for the region to anticipate the growth in coming years and control
fluctuation. The median age is 31 with the highest life expectancy rate of 75 years. Country's 9%
population is mainly categories to 54 years to the 65-year bracket (Bian & Bai, 2019). The
targeted market of the BLK sportswear will be entertaining the needs of customers as they have
expanded the business in order to generate maximum productivity and returns. The BLK
Sportswear brand in Australia which is provide them the leverage in Sri Lanka as people are
more attracted towards the use of brand in effective manner which fulfill their necessities (Sri
Lanka,2019). Nowadays, sportswear have become the fashion trend and contributing in the
society in same manner which tends to create impact in the lifestyle of young generation.
Market Positioning: Market positioning referred as the place where BLK Sportswear has
occupied the place in minds of the customers which will provide them results in the near future.
The company is running their operations in Australia through which they have generated the
positive image worldwide which will acts an leverage in Sri Lanka as the brand is well known
and famous for delivering quality products which can create difference in the life of other people
and attracts the consumers to perceive the product in certain manner. BLK sportswear has
focusing on positioning them in the market by product by excluding the taxes and tarrifs which
cannot affect their revenue and provide certain amount of profit which will help them grow in the
Sri Lankan market. BLK Sportswear has the option to the position their market online too which
will help them gaining more consumers in their course of business and people will get more
Positioning Strategies
The positioning strategies are referred to those strategies which are considered by the company
in order to concentrate on their key areas in which they can take a step forward and achieve the
desired amount of outcome (Zeder, et.al,2018). The positioning strategies has helped the BLK
Sportswear to make the company shine in the spotlight in which they can shine and at the same
time company can compete with their competitors achieve high level of returns. There are
various strategies which will help the BLK sportswear in targeting their market which are as
follows:
11

Cost Positioning Strategy: BLK Sportswear is an customer-oriented company who is focusing
on pursuing their operations in Australia and furthermore, they are targeting the Sri Lanka to
expand their business and achieve the higher amount of growth towards the same. The company
has invested the huge amount of money in commencing their operations which requires the
manufacturing of clothes which are in accordance with the customer’s taste and preferences,
online orders, maintenance of inventory and other procedures. The cost structure which is made
by reduce the cost potentials and as well as on labour costs which makes them successful
business owners as the cost savings which allows the stores to have lower amount of prices and
offers them to consumer which help them in competitive with the competition in the economy
and have market dominance in the Sri Lanka.
Positioning strategy on the basis of product class: This has the crucial role to play in the
positioning decisions of the company which is required as the product should be of good quality
which creates the difference in the life of other people (Dey & Zhang,2014). The people are
always drawn towards the product which depicts the quality of the product in every required
manner. BLK Sportswear as the leading who commence their business in the Australia achieved
the heights due to the superior quality of products which can attracts the more and more
consumers in order to have maximum area of the market which helps in generation of business.
The company has expertise is mainly in the sports apparel under which various sort of products
leads to manufacturing. Company is registered as a textile producer and facilitate operations in
order to maximize the profit in every manner.
Using Social Media for business purposes: Social media these days has become the game
changer which determines the flow of business create certain amount of impact in the life of
other people and focuses on generation of business of BLK industries in different aspects of
business which can create impact in one way or the other. It is required to put emphasis on
building the business which has involvement of B2C marketing and by providing them offers
and discounts which helps in attracting maximum amount of customer base (Theysohn &
Spann,2013). On the other social media has the maximum amount of reach which helps in
attracting maximum level of customers.
Quality Positioning Strategy: The main area of every companies’ concern is the quality in a
way which can provide them maximum amount of customers and helps in attainment of success
12