MPK736 - International Marketing Plan for JB Hi-Fi in India

This report presents an international marketing plan for JB Hi-Fi, a consumer electronics retailer, focusing on its potential entry into the Indian market. The report begins with an executive summary and table of contents, followed by an introduction outlining JB Hi-Fi's company history and the characteristics of the Indian market. It analyzes the Indian business environment, including political, legal, economic, social, cultural, demographic, and natural factors. The analysis includes the nature of demand for consumer electronics in India, estimating market size, product life cycle stages, and competitive structure. A SWOT analysis identifies JB Hi-Fi's internal strengths and weaknesses, along with external opportunities and threats, including the implications of the analysis. The report defines international and market objectives, and recommends a marketing strategy including target market identification, market positioning, and market entry strategy. Finally, it details the marketing mix strategies for product, place (distribution), price, and promotion. The report concludes with a summary of the findings and a list of references.

Running Head: INTERNATIONAL MARKETING
INTERNATIONAL MARKETING
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Executive Summary:
JB Hi-Fi is a much known consumer electronics brand offering a one stop solution for varied
electronic gadgets and appliances of various other brands under one store. This concept has been
very well received in Australia and New Zealand, thus the brand now wishes to explore the
opportunities of the Indian market. Thus, this report provides a get a greater insight on the
international marketing strategies of the brand to establish itself in the dynamic business
environment of India.

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Table of Contents
1. Introduction:.............................................................................................................................5
1.1 Company history:...................................................................................................................5
1.2 Chosen Country and its characteristics:.................................................................................5
2. Discussion....................................................................................................................................7
2.0 Market Analysis – host Country:...............................................................................................7
2.1 Business Environment Analysis:...........................................................................................7
2.1.1 Political/ Legal/ Institutional Environments:......................................................................7
2.1.2 Regulatory Environment.....................................................................................................8
2.1.3 Economic Environment......................................................................................................8
2.1.4 Social and Cultural.............................................................................................................8
2.1.5 Demographic Environment.................................................................................................9
2.1.6 Natural Environment..........................................................................................................9
2.2 Nature of Demand for the Product Selected..............................................................................9
2.2.1 Estimate of Size and Extent of Demand:............................................................................9
2.2.2 Product Category Stage of Product Life Cycle.................................................................10

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2.2.3 Competitive Structure.......................................................................................................10
3.0 SWOT ANALYSIS.............................................................................................................10
SWOT Analysis is a very essential market analysis tool which is employed by the brands to
access their own capabilities, shortcomings and the existing opportunities and challenges in
the immediate business environment they intend to operate (Pai, et al .2013).........................10
3.1 Internal Company Strengths and Weaknesses:....................................................................10
3.2 External Market opportunities and Threats:........................................................................12
Opportunities:............................................................................................................................12
E-commerce industry provides huge potentials for JB Hi-fi to earn grater revenue benefits
from selling their products online. The brand must use this opportunity to build its online
presence that would help in making greater market reach........................................................12
Trade barriers have been reduced which indeed is a boon for the company to expand its
operation in the international market.........................................................................................12
3.3 Implications of SWOT Analysis:.........................................................................................12
4.0 Objectives................................................................................................................................13
4.1 International Objectives.......................................................................................................13
4.2 Market Objective.................................................................................................................13
5.0 Recommended marketing strategy..........................................................................................14

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5.1 Target Markets Identification and Segmentation Strategy..................................................14
5.2Market positioning................................................................................................................14
5.3 Market Entry Strategy..........................................................................................................14
6.0 Marketing Mix Strategies........................................................................................................15
6.1 Product and Branding Strategy............................................................................................15
6.2 Place (Distribution) Strategy...............................................................................................15
6.3 Price Strategy Structure.......................................................................................................15
6.4 Promotion Strategy..............................................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

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1. Introduction:
1.1 Company history:
JB Hi-Fi is New Zealand’s one of the largest Home Entertainment Retailers. It is a public
listed Australian retailer brand which has its specialization in consumer goods (CHEN, 2017). JB
Hi-Fi is located both in Australia as well as in New Zealand. JB Hi-Fi was established in the
Melbourne suburb of Keilor East by John Barbuto in 1974 (Jbhifi.com.au, 2019). It has the most
biggest brands at the best prices with an unbeatable range of consumer goods like LED LCD,
LCD & 3D TVs, Computers, Laptops, 2-in-1’s & Tablets, iPads, Headphones, Wireless
Speakers, Mobile Phones & Home Theatre. According to market researches going by the market
statistics of 2018, JB Hi-Fi ranks seventh as the largest consumer electronic and home appliances
retailers in the world.
1.2 Chosen Country and its characteristics:
The company now intends to make it bigger and better by exploring business at an
international platform by establishing the brand in the Asian countries. Thus it plans to launch its
products in India. India being a developing country where more and more people are turning
conscious about the available technologies to make life better and make their living smarter
(Joseph and Singh, 2013), where big electronic brands like Samsung, LG, Hitachi have a huge
market share JB Hi-Fi intends to expand its operation bringing big electronic brands under one
umbrella and making it way more easier for the consumers to purchase electronic goods and
appliances. Analyzing the Indian electronic industry it is very necessary to understand what

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exactly affects this market. It has been found that Indian market is more vulnerable to macro
factors like the growing middle class population and the unprecedented rise of disposable income
among the growing population. The present ruling government in India largely emphasizes
ongoing Digital and developing “Smart Cities” (Datta, 2015). Thus in all these existing
circumstance JB Hi-Fi has indentified the Indian market and most specifically all the
metropolitan hubs to be appropriate enough to tap and expand its business operations. The
company also intends sin building a strong online presence with their own customized websites
as well as android applications for ensuring better targeting and market penetration especially for
the younger generation. Therefore JB Hi-Fi intends to enter Indian market through franchising
(Jbhifi.com.au, 2019) as it is a very well established brand in the Western Country it intends to
use its brand reputation to build the same market base in the Indian market

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2. Discussion
In India the business environment is characterized by the co-existence of both public as
well as private sector enterprises.
2.0 Market Analysis – host Country:
The market analysis of host country which is India will provide the market experts with an
overview about the legal, political, economic, the regulatory and demographic environment and
what factors impact the demand and sales of consumers electronic goods in the Indian business
market (Kumar and Siddharthan, 2013).
2.1 Business Environment Analysis:
2.1.1 Political/ Legal/ Institutional Environments:
Being one of the largest known democracies of the world, Indian runs on a federal form of
government (Wilkins and Stark, 2017). The political environment of India has a substantial
impact on the business an commercial market of the nation. As a result, the business
environment in India is affected by multivariate political factors. The taxation system is
considered to be very well-developed and several taxes, such as income tax, services tax and
sales tax are imposed by the Union Government. The current ruling government largely
emphasizes of building the international trade relations as well as boosting the technological
market. Thus JB Hi-Fi has chosen the best Asian market to tap and explore its potentials.
Considering the legal environment of India, the Supreme Court stands as the apex body (Choper,

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2013) which regulates the functioning of all the legal institutions and provides a legal framework
for lawful business operation to ensure stability and growth in the Indian market.
2.1.2 Regulatory Environment
Since the inception of Open economy, the business environment has witnessed significant
changes. The regulatory authorities which includes varied central and state administrative bodies
have designed a strong and progressive legal framework to assist in developing sound
international trade relation.
2.1.3 Economic Environment
Indian economy is witnessing tremendous growth in its electronic and gadget production market.
It has significantly emerged as a major growing economy in the world and is expected to be one
of the top three economic powers of the world over the next 10-15 years, backed by its strong
democracy and partnerships. The economic environment is very vulnerable to the economic
policies farmed under the ruling government so the foreign investors must be well equipped with
the necessary knowledge regarding these policies to help the brands strategize their global
business activities
2.1.4 Social and Cultural
Indian being a secular country has a very mixed cultural orientation. The socio cultural
dynamism can be witnessed in the lifestyle and consumption patterns of individuals. On one
hand where India is still considered as a land of snakes and priests on the other hand it is the one
making news launching new space satellites and making history. Therefore for any international

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brand to enter and exists in the Indian market must acknowledge this dynamism of cultural
orientation to better address the needs of the target consumers.
2.1.5 Demographic Environment
The demographic environment states the age, sex, income and education ratio of the
population. The population ratio of male is quite high compared to that of female in India and the
middle income group significantly holds the maximum share of population. Thus JB Hi-Fi must
be aware of these crucial and significant characteristics of the demographic environment to
strategies its market operation
2.1.6 Natural Environment
India is significantly facing huge environmental crisis, sustainable development needs to
be the utmost need of the hour. Thus the companies which intend to invest in the Indian market
must ensure the fulfillment of sustainable developmental goals.
2.2 Nature of Demand for the Product Selected
2.2.1 Estimate of Size and Extent of Demand:
Indian appliance and consumer electronics (ACE) market reached Rs 2.05 trillion (US$ 31.48
billion) in 2017 (Satapathy, et al. 2013) .The main scope of growth and expansion seems to be in
the rural market sector. Growing awareness, easier access, and changing lifestyles have been the
key growth drivers for the consumer market. The Government of India's policies and regulatory
frameworks such as relaxation of license rules and approval of 51 per cent foreign direct

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investment (FDI) in multi-brand and 100 per cent in single-brand retail are some of the major
growth drivers for the consumer market. The demand stands for washing machines and
refrigerators which are more than 75 % of the whole market demand for electronic goods apart
from that there is sufficient demand for air conditioners and fans as well as kitchen appliances.
2.2.2 Product Category Stage of Product Life Cycle
2.2.3 Competitive Structure
3.0 SWOT ANALYSIS
SWOT Analysis is a very essential market analysis tool which is employed by the brands
to access their own capabilities, shortcomings and the existing opportunities and
challenges in the immediate business environment they intend to operate (Pai, et al .2013).
3.1 Internal Company Strengths and Weaknesses:
The JB hi-fi Limited is coined as one of the leading organizations in the consumer electronic
industry. Thus there are certain internal factors which must be reviewed by the firm before
making an entry is the Indian market. Thus these strategies include:
The strengths of the organization:
It’s very strong distribution network starched across a huge global platform

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It’s very effective cost structure which is favorable to the producers who are able to produce at a
very minimum cost as well as for the final consumers who can avail the product at a very
reasonable price
It undoubtedly has a very strong brand portfolio which will definitely help the brand to expand to
other international and global market.
The company known to have a strong and skilled labor force which gives the company an edge
over its competitors (Lowry, Kempton and Hammond, 2014).
The Weakness of the organization:
The company is facing serious threats from the new market entrants as its internal feedback
system is not that strong to counter these challenges.
According to varied market experts JB Hi-Fi has not been careful enough to conduct proper
market research to remain relevant and updated with the current market statistics.
JB Hi-Fi needs more strategic investment in new technologies to successfully expand its business
across the geographical boundaries.
It has also been observed that the quality control department of this brand is not strong enough as
compared to its immediate competitors. Thus it often leads to lack of consistency and quality
check of its products.