Technogym: International Marketing Management Report, Singapore

This report provides a comprehensive analysis of Technogym's international marketing strategy for expansion into Singapore. It begins with an introduction to Technogym and its business in the health and wellness industry. The report then delves into strategic planning, discussing the importance of a well-structured approach for international market entry, including the decision-making process and mode of entry. The SWOT and PESTLE analyses are presented to evaluate internal and external factors impacting Technogym's success in Singapore. Additionally, the report examines consumer buying behavior, cultural differences, and their influence on Technogym's marketing strategies. The Ansoff Matrix is used to analyze growth strategies, including market penetration, product development, and market development. The report also explores the 7Ps of marketing and international pricing strategies, providing a detailed overview of the factors critical for Technogym's successful international expansion. The report highlights the importance of understanding the local market and adapting marketing efforts to the cultural nuances of Singapore.

International
Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2 ...........................................................................................................................................9
CONCLUSION .............................................................................................................................14

INTRODUCTION
Technogym a manufacturer of fitness equipment which is mainly based in Cesena, Italy.
Company as established in the year 1983 by Nerio Alessandri. Organisation mainly operate their
functions in health and wellness industry. Recently, Technogym opened their new office and
showroom in Kuala Lumpur, Malaysia as the hub of their expansion plans into this region, with
their immediate next country being Singapore. International marketing is termed as a application
of marketing principles as to effectively satisfactory numerous set of needs and wants of
individuals that mainly resides across the country national borders. This strategy is mainly
undertaken by companies to make an extension in their profitability growth.
This assignment is based on TECHNOGYM, Malaysia. Company is moving to
Singapore. Main products that has been offered by company include health, wellness and Gym
EQUIPMENT. This report covers discussions on strategic approaches to international marketing
that would also cover the 7P's, SWOT and PESTLE Analysis, International pricing and other
related factors that are required by company to expand their business on an international platform
(Baker, 2003, pg 145).
TASK 1
1.0 Strategic Planning Approach
The importance of a properly structured strategic planning is to maximise the
internalization of the business of Technogym, as it begins its expansion in well thought of way.
In simple terms, it is considered as an organisational management activity which us undertaken
by company to set priorities, strengthen operations, focus energy and resources and further
ensure that stakeholders and employees are operating their operations towards common goal of
company. Taking the Nike story, their move to expand beyond the initial boundaries yielded
much success, as depicted below, shows how a meagre self business went onto the international
platform with careful planning and promotional efforts (Cateora and Ghauri, 2013):
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Deciding to go Global: From Malaysia to Singapore
The Malaysian Technogym office aims to expand its reach into Singapore, and undertake all
marketing and post sales services that entails it its business portfolio. Going into Singapore, like
in many other countries, requires the decision of its team in Malaysia and the following should
support its endeavour to expand outside Malaysia.
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The Malaysian office, aims to go Global, as it has to understand the current economy state in Malaysia
and thus its business growth rate, and the opportunity to tap into a good country with stable economy
hence minimizing its risk of only one country, where in Malaysia cheaper substitutes seems to dominate
home-use of gym equipment, thus its only reliable option is corporate clients – limited market in a
competitive environment (Cateora and Ghauri, 2013).
Also noted that Technogym, the parent company, is ever ready to support and expand its
business to increase market share and profitability and has in its business structure to promote
and support its commercial growth internationally.
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Mode of entry:
Technogym strategy will use the (1) global strategy, where it provides standard
products/services across different country markets and (2) a transnational strategy where
technogyms emphasis (key values) is to improve local efficiency to respond to its global
commercial needs (Bartlett, Ghoshal and Birkinshaw, 2004)
There are mainly five common modes that can be undertaken by an organisation as follows:
Technogym, will endeavour to enter the Singapore Market as a Wholly Owned Subsidiary of
Technogym, leveraging on its brand-name and making a commitment to be present to its
clientele that will be built upon, by having a sales office in Singapore. This will provide a unique
arrangement of employing Singaporeans sales force, to understand and build local market and
reduce the risks of any marketing failure, by leveraging on Technogym’s marketing arm, as well
as localizing marketing activities in line with Singapore’s culture, buying behaviour and
demographics (Baker, 2003).
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SWOT Analysis
SWOT analysis is termed as a framework with the help of which organisation can
effectively able to identify, analyse internal as well as external factors that may affect
organisation. It is one of the most effective tool with the help of which organisation can
effectively able to identify overall strategic position. In addition with this, with the help of this
company can effectively able to evaluate those environmental factor that may hamper
organisational performance. With the help of this organisation can effectively able to frame
strategies that will aid them to overcome challenges in best effective manner. Thus, it is essential
for company to consider this tool as with the help of the help of this company can able to gain
more strategic edge while gaining subsequent profitability.
The SWOT analysis evaluated that Technogym expand their business in Singapore. As country
offer great place to increase growth prospective with the help of which company can effectively
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able to increase their market expansion growth. For this, it is important for Technogym to
effectively overcome challenges that can be later face by company, as by overcoming those
challenges company can effectively able to increase their profitability while serving customers of
Singapore at best.
Organizational Structure
Based on Technogym’s organizational structure, it operates on a very flat organization and their
senior management consist of two finance and administrative directors, and others are very
operational and commercial direc tors, inclusive of the CEO who undertakes a commercial
portfolio as well (Corporate.Technogym.com, 2019). The key values and mission of this
organization represents the emphasis on research, innovation, quality, reliability and is evident of
success in practicing these values being the official supplier for the last 5 editions of Olympic
and winning international awards (Corporate.Technogym.com, 2019).
Technogym’s mission statement is rather good, as it its clear in purpose, and has a social
responsibility in its understanding. However, what is lacking is a clear Vision Statement which
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could read as follows: Becoming The World Leader in Health & Wellness Solutions, which
would direct its team towards achieving greatest and build upon their successes worldwide,
wherever they go – be the leader!
PESTLE Analysis
Mintzberg (2007) states that a strategy positions the organization’s decision making towards the
way it maneuvers and mediates the environment in competes in. Thus an analysis of the
environment is imperative, as below table elaborates (Contributor, 2016) :
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The Pestle Analysis supports Singapore’s government drive to drive their economy through
FDI’s and creating and environment for business and international trade that would attract
MNC’s into Singapore (Akalpler and Adil, 2017) and the elaboration as follows:
Political:
The political, peaceful stability of Singapore will encourage Technogym to confidently
established its footprints in Singapore fitness industry. Technogym must always be in line with
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the government agencies, and not seen as a threat. In line with this, joining government
initiatives in the wellness of its citizens is imperative.
Economic:
Being one of the best economies, and the growing economy of Singapore, driven by the
government and their people, Technogym can look into a positive growth, year on year, in
Singapore. It can tap into corporations as well as residential markets, and the growing gym
enthusiasts in Singapore. In addition, being a free market, this will benefit Technogym to operate
in an effective manner.
Social:
The traditionalism of being an Eastern country Singapore social dynamics has moved towards
western culture, as its people is exposed by the free market business environment that brings in
the diverse westerners into the country. Technogym, a western brand, with their ethical values,
can capitalise and market their product fulfilling their needs and demands in an effective manner.
Technological:
Singapore’s boast of an extensive technological and internet ready bsines domain that will enable
Technogym’s state-of-the-art equipment to gel into the society of Singapore. This infrastructure
also will enable better support the clientele and would be an attractive position to serve a larger
client base.
Environmental:
Environmental factors is similar like Malaysia, and the challenges has limited affects on
Technogym’s business model. The country always aims to create the best and safest
environments in their country, that is inline wellness.
Legal:Being a fitness company, Technogym may face legal issues and thus must understand
local legislations on customer rights and negligence laws. Thus, it become essential for company
to have good quality/safe equipment, professional trained team to support the clientele.
TASK 2
Buying behaviour and cultural differences
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Cultural factors is a set of ideologies and values of a group of individuals and a particular
community. It has been determined that cultural factors have an impact on buying behaviour of
individuals. As each and every individual have diverse set of principles, beliefs and principles
further it has been analysed that a customer goes through several stages before making a
purchase and their purchase is mainly followed by post purchase evaluation (Kotler and et. al.,
2018). Thus, it becomes essential for Technogym to effectively study consumer behaviour and
take advantage of suitable marketing strategy as to effectively conduct their business in
Singapore. As culture influence customer's behaviours as well thoughts thus, with the effective
determination of consumer behaviour expansion can turn out to be a fruitful investment.
Mentioned below there are some important cultural factor that are required to be undertaken by
company:
Culture:
Culture is termed as an rituals, practices, beliefs and customs of particular group of individuals.
Culture varies from one region to other (Kumar, 2016). Thus, in order to expand Technogym in
the marketplace of Singapore it is essential for company to understand cultural practices that has
been prevailing in country and then frame marketing strategies accordingly.
Sub-Culture:
The culture can be further divided into subculture wherein the people are classified more
specifically on the basis of their shared customs and beliefs, including religions, geographic
regions, nationalities, etc. The different sub-cultures forms several market segments whose needs
can be carefully studied by the marketer, and the strategic marketing decisions can be taken
accordingly.
Social Class:
In this factor, social class from which an individual belong mainly affect buying decision.
Society is mainly differentiated into three social classes that include lower, middle, and upper
class. Customers from these groups have different buying behaviours (Kumar, 2016). Thus,in
order to offer services as per according to market of Singapore, it is essential for Technogym to
identify needs and demands of customers as per according to society of country.
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