International Marketing: Market Fit Assessment for TEBCO and Palatino

This report provides a comprehensive analysis of the international marketing strategies of TEBCO, an Australian e-bike manufacturer, and Palatino, an Indian e-bike importer. The report investigates the e-bike market, exploring market segmentation, product positioning, market selection, and market entry considerations. It examines the rationale, risks, and technical requirements associated with each of these strategies for both companies. The report highlights the importance of adapting strategies to the specific context of each market, considering factors such as consumer sentiment, competitive pressure, and economic conditions. The report concludes by emphasizing the significance of international marketing for business expansion and the need for both TEBCO and Palatino to effectively implement these strategies to mitigate risks and achieve success in their respective markets.

Running head: INTERNATIONAL MARKETING
International Marketing
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
This report includes a detailed insight about Australian e-bike manufacturer TEBCO and Indian
e-bike importer Palatino. The report investigates the concept of powered bicycles that has
endured despite market inertia in Australia and globally. Additionally, the report also highlights
the relative change in the national and Australian domestic shifts in consumer sentiment by
undertaking a market fit assessment that includes market positioning, segmentation, market
selection and entry considerations. Both TEBCO and Palatino are e-bike manufacturers and
importers in the Australian and Indian market respectively. While establishing their business
internationally, both TEBCO and Palatino needs to ensure successful market segmentation,
product positioning, market selection and market entry strategies. There are potential risks
involved in market segmentation, product positioning, market selection and market entry
strategies that TEBCO and Palatino need to address and mitigate issues for conducting business
successfully.

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Table of Contents
Introduction......................................................................................................................................3
Market segmentation.......................................................................................................................3
Rationale......................................................................................................................................4
Risks............................................................................................................................................4
Technical requirements................................................................................................................4
Positioning procedures.....................................................................................................................5
Rationale......................................................................................................................................5
Risks............................................................................................................................................5
Technical requirements................................................................................................................5
Market selection...............................................................................................................................6
Rationale......................................................................................................................................6
Risks............................................................................................................................................6
Technical requirements................................................................................................................7
Entry considerations........................................................................................................................7
Rationale......................................................................................................................................7
Risks............................................................................................................................................7
Technical requirements................................................................................................................8
Conclusion.......................................................................................................................................8

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References......................................................................................................................................10

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Introduction
Business organizations aim towards global expansion, as the home market becomes
saturated with increased competition. It is evident that the home market has similar business
organizations in the same sector that gives rise to tough competition. As a result, it becomes
difficult for the business organizations to increase their business. In order to expand the business
by attracting more customers, business organizations prefer international expansion. As
commented by Czinkota and Ronkainen (2013), marketing at the international platform is
crucial, as this helps in creating a unique image in the eye of the target customers and expanding
the business.
This report includes a detailed insight about Australian e-bike manufacturer TEBCO and
Indian e-bike importer Palatino. The report investigates the concept of powered bicycles that has
endured despite market inertia in Australia and globally. Additionally, the report also highlights
the relative change in the national and Australian domestic shifts in consumer sentiment by
undertaking a market fit assessment that includes market positioning, segmentation, market
selection and entry considerations.
Market segmentation
As commented by Wilkinson (2013), market segmentation is important, as this provides
an opportunity for the business organizations to reach the customer with particular needs and
customers. As a result, the business organization is able to get an accessible market to which they
can sell their maximum products and earn a profit. However, a difference between the rationale,

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risks and technical requirements for business organizations that manufacture their products and
business organizations imports the products.
Rationale
TEBCO is an e-bike manufacturer in the Australian market that needs to segment the
market in order to know the specific needs and demands of the customers. Thus, market
segmentation for TEBCO is essential, as this will allow the company to know the needs and
demands of the customers and fulfill it by launching e-bike with the desired features ("TEBCO |
The Original Electric Bicycle Company | Website", 2018). On the other hand, the significance of
market segmentation for Palatino differs from that of TEBCO. This is because Palatino is an
Indian e-bike importer. Market segmentation for Palatino need to focus to match the needs of the
customers better, as importing wrong products will hamper the business drastically ("Welcome
to Palatino", 2018).
Risks
Market segmentation has potential risks for TEBCO and Palatino that differs
distinctively, as one of them is the manufacturer and the other one is the importer. As TEBCO is
a manufacturer in the Australian market, the potential risk of market segmentation includes
larger inventory needs to be maintained for manufacturing and distributing (Li et al., 2013).
However, on the contrary, the risk for market segmentation for Palatino includes loss of
investment due to changes in the characteristics of the market segment.
Technical requirements
Effective market segmentation needs to implemented by TEBCO and Palatino for
expanding their business and generating revenue. TEBCO needs to ensure that the market

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segmentation is measurable, as this will ensure in determining the size of the market as well as
the purchasing power of the Australian population. On the other hand, the while segmenting the
target market, Palatino needs to be substantial. This will help Palatino to segment the market
large and profitable enough to serve the needs of the customers (Li et al., 2013).
Positioning procedures
As mentioned by Morrison (2013), positioning the product is essential for the business
organizations, as this provides an opportunity to determine the best method of communicating
with the target customers based on their needs and demands.
Rationale
TEBCO needs to position their e-bikes in the Australian market effectively, as this
provides an opportunity for the company to understand needs of the target customers.
Understanding the present need of the customers will help TEBCO to introduce features referred
or desired by the customers in the e-bikes. On the other hand, product positioning for Palatino is
essential, as this helps the company to weigh the competitive pressure in the market. As Palatino
is an e-bike importer in India, weighing the market competitiveness is essential (Grenci, 2013).
Risks
Positioning is crucial for TEBCO as failing to create a unique image in the eye of the
target customer hampers the company to attract the customers to buy their product when they
think about e-bikes. On the other hand, as Palatino is an importer, the potential risk of market
positioning includes over positioning their product. Palatino might import e-bikes with extra
special features that eventually make the customer group too small (Babin & Zikmund, 2015).

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Technical requirements
While positioning the e-bikes, TEBCO needs to know their target customers in the
Australian market extremely well. This will help TEBCO to develop a deeper understanding of
the needs of the customers and manufacture e-bikes accordingly. However, on the contrary, as
Palatino is an e-bike importer, one of the significant features while positioning their product
includes telling the customers about the product by providing suitable evidence.
Market selection
As commented by Eslava et al. (2013), the concept of market selection is defined as the
decision taken by the business organizations in the market to invest and pursue the business in
future.
Rationale
Effective marketing selection is essential for TEBCO, as this provides an opportunity to
determine the growth potentiality of the market. Being a manufacturer of e-bikes in the
Australian, TEBCO needs to select the market that will ensure the maximum growth of the
company by increasing the sales. On the other hand, as Palatino is an e-bike importer, the market
selection is essential, as this will help in determining the economic factors and the market hub of
the Indian market (Dosi et al., 2015).
Risks
One of the potential risks that TEBCO might encounter while selecting the market
includes misunderstanding the market that will give the maximum growth for their business.
Failure in appropriate market selection will hamper the growth of the company in the Australian
market. However, on the contrary, the potential risk for Palatino includes failing to screen the

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preliminary requirements of the target market. As a result, Palatino fails to short list the markets
that eventually hamper their importing decisions (Annushkina & Trinca Colonel, 2013).
Technical requirements
TEBCO needs to select the parameters of market selection for the Australian market in
order to increase the sales of e-bikes. Selecting the parameters effectively provides an
opportunity for TEBCO to understand the market demands and requirements before launching
their products for the market. On the other hand, as Palatino is an e-bike importer, it is essential
for the company to evaluate the market and test their marketing strategies (Bartelsman,
Haltiwanger & Scarpetta, 2013).
Entry considerations
According to Maqsoom et al. (2014), the market entry strategy is the key feature that
determines the successful business expansion. The nature of the product or service highly
influences the market entry strategy used by the business organizations for entering the host
country and establishes business successfully.
Rationale
For international marketing, the market entry strategy is significant, as this will help
TEBCO to define the market they aim to sale the e-bike. Selecting the appropriate market entry
strategy will help in setting clear goals by conducting a thorough market research. However, on
the contrary, selecting appropriate marketing entry is essential for Palatino, as this will help the
company to study the competition in the market (Kotabe, et al., 2014).

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Risks
While going international, the business organizations encounter potential risks. For
TEBCO, the potential risk for deciding the market entry strategy includes selecting the
inappropriate market entry strategy thereby, establishing the unsuccessful business at the
international market. However, on the contrary, the potential risk for Palatino while selecting
market entry strategy is the unavailability of essential information about the host market.
Technical requirements
In order to ensure effective market entry strategy, TEBCO needs to consider the target
market in the host country. Considering the target market by conducting a thorough market
research will help TEBCO in determining the most effective market entry strategy. On the other
hand, Palatino needs to consider the financial capability of the company while selecting the
market entry strategy. This will help the company to invest accordingly while entering the
international market (Holtbrugge & Baron, 2013).
Conclusion
In this report, it can be concluded that international marketing is crucial for the business
organizations in order to sustain in the competitive market. With time, the market of the home
country is saturated with similar business organizations thereby, giving rise to tough competition.
As a result, it becomes difficult for the business organizations to grow their business by
attracting more customers. Thus, the international expansion provides an opportunity for the
business organizations to attract new customers and ensure business growth by penetrating a new
market. Thus, while establishing internationally, the business organizations need to market them
and their product effectively and appropriately for maximizing the sales.

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Both TEBCO and Palatino are e-bike manufacturers and importers in the Australian and
Indian market respectively. While establishing their business internationally, both TEBCO and
Palatino needs to ensure successful market segmentation, product positioning, market selection
and market entry strategies. There are potential risks involved in market segmentation, product
positioning, market selection and market entry strategies that TEBCO and Palatino need to
address and mitigate issues for conducting business successfully.

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References
Annushkina, O. E., & Trinca Colonel, R. (2013). Foreign market selection by Russian MNEs–
beyond a binary approach?. Critical perspectives on international business, 9(1/2), 58-87.
Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Cengage Learning.
Bartelsman, E., Haltiwanger, J., & Scarpetta, S. (2013). Cross-country differences in
productivity: The role of allocation and selection. American Economic Review, 103(1),
305-34.
Covin, J. G., & Miller, D. (2014). International entrepreneurial orientation: Conceptual
considerations, research themes, measurement issues, and future research
directions. Entrepreneurship Theory and Practice, 38(1), 11-44.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
Dosi, G., Moschella, D., Pugliese, E., & Tamagni, F. (2015). Productivity, market selection, and
corporate growth: comparative evidence across US and Europe. Small Business
Economics, 45(3), 643-672.
Eslava, M., Haltiwanger, J., Kugler, A., & Kugler, M. (2013). Trade and market selection:
Evidence from manufacturing plants in Colombia. Review of Economic Dynamics, 16(1),
135-158.
Grenci, R. T. (2013). Positioning computer literacy as a value-added business core course.

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Holtbrügge, D., & Baron, A. (2013). Market entry strategies in emerging markets: An
institutional study in the BRIC countries. Thunderbird International Business
Review, 55(3), 237-252.
Kotabe, M., Marshall, A., Ang, S., Griffiths, K., Voola, R., Robert, R., & Helsen, K. (2014).
Logistics: sourcing and distribution.
Li, X. R., Meng, F., Uysal, M., & Mihalik, B. (2013). Understanding China's long-haul outbound
travel market: An overlapped segmentation approach. Journal of Business
Research, 66(6), 786-793.
Li, Z., Wang, W., Yang, C., & Ragland, D. R. (2013). Bicycle commuting market analysis using
attitudinal market segmentation approach. Transportation Research Part A: Policy and
Practice, 47, 56-68.
Maqsoom, A., Charoenngam, C., Masood, R., & Awais, M. (2014). Foreign market entry
considerations of emerging economy firms: An example of Pakistani
contractors. Procedia Engineering, 77, 222-228.
Morrison, A. M. (2013). Marketing and managing tourism destinations. Routledge.
TEBCO | The Original Electric Bicycle Company | Website. (2018). Electric Bicycle. Retrieved
29 January 2018, from http://www.electricbicycle.com.au
Welcome to Palatino. (2018). Palatino.in. Retrieved 29 January 2018, from
http://www.palatino.in/about_us.aspx
Wilkinson, F. (Ed.). (2013). The dynamics of labour market segmentation. Elsevier.

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