International Marketing Report: TEBCO, Palatino E-bike Companies

This report examines the international marketing strategies of TEBCO, an Australian e-bike manufacturer, and Palatino, an Indian e-bike importer. It analyzes the rationale, risks, and technical requirements of market segmentation, product positioning, market selection, and market entry strategies for both companies. The report highlights the importance of adapting marketing strategies to the specific contexts of the Australian and Indian markets, considering factors such as competition, customer needs, and economic conditions. It also addresses potential challenges like financial losses, over-positioning, and incorrect market selection, and emphasizes the need for thorough market research and strategic planning to ensure successful international expansion. The report concludes that effective international marketing is crucial for business growth in a competitive global market, emphasizing the need for both companies to address potential risks and implement effective strategies to maximize sales and achieve their international business goals.

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International Marketing
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Executive Summary
In this report, the international marketing of TEBCO, the Australian e-bike manufacturer and
Palatino, the Indian e-bike importers are considered. The report discusses the potential rationale,
risks and requirements while conducting market segmentation, product positioning, market
selection and market entry strategy while international marketing for the mentioned e-bike
companies. 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......................................................................................................................................4
Market segmentation.......................................................................................................................4
Rationale......................................................................................................................................5
Risks............................................................................................................................................5
Technical requirements................................................................................................................5
Positioning procedures.....................................................................................................................6
Rationale......................................................................................................................................6
Risks............................................................................................................................................6
Technical requirements................................................................................................................7
Market selection...............................................................................................................................7
Rationale......................................................................................................................................7
Risks............................................................................................................................................7
Technical requirements................................................................................................................8
Entry considerations........................................................................................................................8
Rationale..........................................................................................................................................8
Risks............................................................................................................................................9
Technical requirements................................................................................................................9
Conclusion.......................................................................................................................................9

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References......................................................................................................................................11

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Introduction
With time, the market of the home country is saturated due to increasing number of
similar organizations. As a result, the business organizations encounter challenges and issues in
conducting business successfully in the home market due to increasing competition. Thus,
sustaining in the competitive home market becomes difficult for the business organizations. The
only way for running the business successfully and generating revenue for the company is by
international expansion. International expansion for the business organizations provides an
opportunity for them to attract new customers by penetrating new markets in the host country.
According to Czinkota and Ronkainen (2013), marketing in the case of international expansion is
crucial as the business organizations ventures into a completely new market. Thus, the marketing
strategy used by the business organizations needs to be well planned and innovative so that they
are able to create a unique image in the eye of the target customers and strengthen their position.
In this report, the international marketing of TEBCO, the Australian e-bike manufacturer
and Palatino, the Indian e-bike importers are considered. The report discusses the potential
rationale, risks and requirements while conducting market segmentation, product positioning,
market selection and market entry strategy while international marketing for the mentioned e-
bike companies.
Market segmentation
According to Wilkinson (2013), the concept of market segmentation highlights the
opportunity the business organizations get to reach the potential customers thereby, making it
easy for the business organizations to know needs and demands. Thus, successful market

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segmentation allows the business organizations to get hold of the accessible market to which
they can sell their product and generates profit. However, the rationale, risks and requirements
for the manufacturers and the importers differs largely.
Rationale
The significance of market segmentation for Palatino and TEBCO differs, as Palatino is
an e-bike importer whereas TEBCO is an e-bike manufacturer. Successful market segmentation
is important for Palatino, as this allows the company to emphasize to match the demands and
expectations of the target customers. This is because importing the product with undesired
features in the e-bike for Palatino affects the business drastically ("Welcome to Palatino", 2018).
On the other hand, market segmentation for TEBCO is essential, as this will allow the company
develops a better understanding about the needs and demands of the target customers and
manufacturer e-bike accordingly ("TEBCO | The Original Electric Bicycle Company | Website",
2018).
Risks
The risks involved for Palatino for market segmentation includes huge financial loss, as
the characteristics of the target market might change suddenly thereby, restricting the sales of the
e-bikes completely. However, on the other hand, the potential risks for TEBCO while
segmenting the market include excessive use of financial resources for conducting a thorough
market research and developing a deeper understanding about the target customers and
manufacturing e-bikes by considering the gathered information (Li et al., 2013).

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Technical requirements
Both Palatino and TEBCO need to implement market segmentation strategy effectively
for getting the access to the target market. The market segmentation strategy by Palatino needs to
be substantial, as this will provide an opportunity for the company to segment the market by
considering the profit thereby, serving the needs of the target customers. On the other hand,
market segmentation by TEBCO needs to be measurable as this will help the company to
determine the size of the Australian market and predict the purchasing power of the market
thereby, developing pricing strategy (Li et al., 2013).
Positioning procedures
According to Morrison (2013), the concept of product positioning highlights the strategy
of positioning the product in the eye of the target customers based on the allocated price. As a
result, the business organizations are able to communicate their product with the target
customers, so that they return to the particular organization when the customers think of buying
the product.
Rationale
Positioning the e-bikes for the target customers is significant for Palatino, as this will
provide an opportunity for the company to determine the weight of the competitive market and
the sustaining pressure. Thus, determining the weight and the competitiveness of the Indian
market is essential for Palatino. However, on the contrary, positioning their product is crucial for
TEBCO, as the Australian market has several e-bike manufacturers. Therefore, TEBCO needs to
ensure that whenever the customers think of e-bikes, they come to TEBCO for purchasing
(Grenci, 2013).

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Risks
Over positioning, is one of the significant risks for Palatino, as they might import e-bikes
with such high tech features that are not desired by the target customers thereby, narrowing down
the target customers largely. However, on the other hand, the risk that TEBCO might face while
positioning their e-bikes includes failing to create a unique image in the eye of the target
customers. As the Australian market has similar companies, it might be difficult for TEBCO to
position their product (Babin & Zikmund, 2015).
Technical requirements
In order to ensure product positioning effectively, Palatino needs to inform the target
customers about their e-bike by providing them suitable knowledge about the e-bike. However,
on the other hand, as TEBCO is the e-bike manufacturer, the company needs to develop in-depth
insight of the needs of target customers for manufacturing the e-bikes.
Market selection
According to Eslava et al. (2013), the concept of market selection highlights the decision
and aim of the business organizations to invest in the market and conduct business in the future.
Rationale
Effective market selection by Palatino will help in considering the economic factors of
the Indian market, as Palatino is an e-bike manufacturer. Considering the economic factors while
selecting the market will help Palatino to invest the inventory accordingly. On the other hand,
appropriate market selection by TEBCO will help in predicting the growth potentiality of the
Australian market. Based on the future potentiality of the market, TEBCO can manufacture the
e-bikes (Dosi et al., 2015).

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Risks
As Palatino is an importer of the e-bikes in the Indian market, the potential risks involved
while market selection includes failure to screen the initial requirements of the target market.
This leads to the failure in the selection of markets thereby, hampering the import decisions by
the company. On the contrary, misunderstanding the maximum growth of the Australian market
is one of the risks that TEBCO might encounter while selecting the market (Annushkina &
Trinca Colonel, 2013).
Technical requirements
In order to ensure effective market selection, Palatino needs to analyze the selected
market and test the marketing strategies the company is planning to implement to advertise their
product. On the other hand, parameter selection is crucial for TEBCO, as this will provide an
opportunity for the company to maximize the sales in the Australian market. As a result, TEBCO
will be able to manufacture the e-bike that will consider the needs of the target customers in the
Australian market (Bartelsman, Haltiwanger & Scarpetta, 2013).
Entry considerations
As mentioned by Maqsoom et al. (2014), the concept of market entry highlights the
strategy and planning developed by the business organizations to establish successful global
expansion. The mode of the entry selected by the business organizations determines the success
of the international venture. Thus, appropriate selection of entry mode influences the success of
the international venture.

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Rationale
Considering the market entry strategy is important for Palatino, as this will provide an
opportunity for the company to use the knowledge and understanding of the locals and establish
them successfully in the host country. On the other hand, selecting appropriate market entry
strategy for TEBCO is significant, as the company will be able to establish a successful
partnership with the local companies in the host country and expand the business.
Risks
Establishing business internationally possesses potential risks for Palatino, as the goals
and objectives of Palatino might not be clear to the host companies thereby, hampering the
international expansion. On the other hand, the potential risk for TEBCO for ensuring successful
market entry considerations includes collaborating with the incorrect host company. This will
result in loss of resources for TEBCO thereby, hampering international venture (Covin & Miller,
2014).
Technical requirements
Palatino can achieve effective market entry strategy if they consider their economic
capability. As a result, Palatino will be able to use their financial resources wisely and enter the
market of the host country. On the other hand, thorough and sincere market research is essential
for TEBCO while determining their market entry strategy (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.

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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 the
new market. Thus, while establishing internationally, the business organizations need to market
them and their product effectively and appropriately for maximizing the sales.
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.