MKTG801 - International Marketing Plan: Semantic Software USA Entry

This report presents an international marketing plan for Semantic Software, an Australian company specializing in artificial intelligence, as it seeks to expand its business into the USA. The report begins with an introduction to the company and its services, followed by a discussion of the research methodology used. It then provides a situational analysis, including internal and external environmental factors, a company analysis, and a detailed market analysis of the USA. The report explores the nature and extent of demand, the product category stage in the product life cycle, and external factors through a PEST analysis. Competitor analysis and a SWOT analysis are also included, leading to the establishment of international and market objectives. The document recommends a market mix strategy, encompassing target market identification, segmentation, and market positioning. Furthermore, it outlines a market entry strategy, marketing mix strategies and tactics (4Ps), a budgeting plan with forecasted sales and expenditure, and a monitoring action plan for evaluation and control. The report concludes with recommendations and references.

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EXECUTIVE SUMMARY
The report is on an Australian Company Semantic Software which deals in artificial technology.
The company seeks to establish it business internationally so the article is about an international
business plan. The report begins with an introduction that highlights details of the company,
what it offers and the country of choice it wishes to establish business. It then touches on the
research methodology about the technique that was used to conduct the research. This is
thenfollowed by a situational analysis which talks about internal and external environment and
then a company analysis which is an evaluation of the company’s performance (Hall, 2016). This
is then followed by a market analysis which elaborates in length the market situation in USA.
The report then looks at nature and extends of demand and how they are correlated. Product
category stage of product life cycle is the next step and the report highlights where the company
is in the product life cycle. This is followed by external analysis which highlights the PEST
analysis. It then discusses competitor analysis whereby the company evaluates its rival in the
same industry. A SWOT is then discussed in detail and its implication. This is followed by
discussion on objectives in relation to the international and market objectives of the company.
The document thus discusses the recommended market mix which encompasses target Markets
Identification and Segmentation Strategy with several subtopics on the segmentations. After that
the document talks about market positioning on how product occupies consumers’ mind. The
document then highlights the market entry strategy on how the company is to enter the USA
market. This is followed by discussion on marketing mix strategies and tactics which relates to
the 4P’s strategy and highlights on each P. A budgeting plan is what that follows and
highlighting of the forecasted sales and expenditure and recommendation based on the assumed
budget and the assumptions made. There is then a discussion on a monitoring action plan which
involves how to evaluate, monitor and control the business plan. This is followed by a
conclusion based on the report and then references to indicate from where the information was
sourced.

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Table of Contents
1.0 INTRODUCTION.....................................................................................................................................6
2.0 RESEARCH METHODOLOGY...................................................................................................................7
3.0 SITUATIONAL ANALYSIS.........................................................................................................................7
3.1 Company analysis..............................................................................................................................7
3.2 Market analysis..................................................................................................................................8
3.3 Nature and extent of demand.........................................................................................................10
3.4 Product category stage of product life cycle....................................................................................10
3.5 External analysis..............................................................................................................................11
3.6 Competitor analysis.........................................................................................................................12
4.0 SWOT ANALYSIS...................................................................................................................................13
4.1 Internal company strengths and weaknesses..................................................................................13
4.2 External Market opportunities and threats.....................................................................................13
4.3 Implications of SWOT analysis.........................................................................................................14
5.0 OBJECTIVES..........................................................................................................................................14
5.1 International objectives...................................................................................................................14
5.2 Market objectives............................................................................................................................15
6.0 RECOMMENDED MARKET MIXING STRATEGY.....................................................................................16
6.1 Target Markets Identification and Segmentation Strategy..............................................................16
6.2 Market positioning..........................................................................................................................17
6.3 Market entry strategy......................................................................................................................17
7.0 MARKETING MIX STRATEGIES AND TACTICS........................................................................................18
7.1 Product/Service and Branding Strategy...........................................................................................18
7.2 Place (Distribution) Strategy............................................................................................................18
7.3 Price Strategy...................................................................................................................................18
7.4 Promotion Strategy (including Promotional Budget).......................................................................19
8.0 PLANNING BUDGET.............................................................................................................................19
8.1 Planning assumption........................................................................................................................19
8.2 Forecast revenue.............................................................................................................................20

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8.3 Forecast expenditure.......................................................................................................................20
9.0 IMPLEMENTATION AND CONTROL......................................................................................................21
9.1 Formal Project Plan for Implementation of Recommendations......................................................21
9.2 Monitoring of action plan................................................................................................................21
10.0 CONCLUSION.....................................................................................................................................23
REFERENCES..............................................................................................................................................24

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1.0 INTRODUCTION
Semantic Software is a company based in Australia that deals with research on software and
development and the company focuses on Artificial intelligence technologies. The company was
established in 2008 and can be categorized as a Small and Medium Enterprise. It is the leading
company in Australia in semantic technology and seeks to grow and expand to the international
scene. Semantics is a language used in programming while Artificial Intelligence is intelligence
installed in machines (Kasemsap, 2017). The level of intelligence installed in machines cannot
reach that of the human brain but the machine makes up by quantity since it is installed with all
categories of knowledge unlike a human being who s restricted to one specialty or a handful. The
company service involves developing search engines on the web to comply with the user’s
answers or feedback also known as artificial intelligence since the web is only using metadata to
place information into its correct context. The company’s products are storing and retrieving
mega data for large firms. The main market target for Semantic Software is the Medical industry,
e-commerce, intelligence security agencies and the financial industry in countries which are well
endowed with technology and use of internet. It also seeks help customers retrieve large amounts
of data stored online. Its main focus is on e-commerce where buyers and sellers transact online.
Customers who shop online give a description of commodity they want to buy and the search
engine will give an outcome of what the customer is expecting. The medical industry is growing
and is also known as digital doctor involves patients asking question or giving symptoms of their
disease and the web has a mega data which places the question in its context which is
predetermined by being analyzed in a mega data storage and then matched against a knowledge
graph which then gives an automated answer to the question. There is also synchronization of
patient information by the doctor and other medical personnel for easy retrieval and quick
diagnosis of the patient’s history. The company will also focus on the intelligence community
where individuals’ profile can be accessed all at once like their social media account and
criminal records. Semantic Software seeks to enter the international market thus it has to have a
market strategy. Market strategy is the method that a company intends to use to distribute its
products to the targeted market by establishing contacts in the targeted country and making the
targeted market aware of the product to be offered. The literature will explore how to come up
with the international business plan (Johnson, 2016). The primary entry strategy to be used will
be direct exporting. That is; the company will use its own resources to sell its services directly to

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the targeted market. Then, the company will hire agents to represent the company’s interest thus
their choice should be considered carefully since they will be the face of the company in the
country they are hired to represent. In this case the country of choice is USA.
2.0 RESEARCH METHODOLOGY
This refers the method of research used to come up with the marketing entry strategy and main
target market internationally. The method of research could either be qualitative or quantitative.
The method used was quantitative research since the method used to collect raw data was via
online questionnaires and surveys as it less expensive and more comprehensive in this situation.
Quantitative research involves statistical measurement of the raw data using statistical tools to
draw conclusions. The tools to be use are descriptive statistics to analyze data from samples and
inferential statistics to analyze data from random variations such as sampling. (Keusch, 2015).
3.0 SITUATIONAL ANALYSIS
This is how companies do their analysis in their internal and external environment to help
evaluate their customers, their capabilities and their business environment. Internal environment
also known as macro environment is factors that affect the company from within and the
company has control over but external environment (micro environment) involve factors that
affect the company from outside and normally the company has little control over. Examples of
external environment include government policies, change in technology or competition.
3.1 Company analysis
This involves the process via which a company conducts a deep or thorough analysis of itself to
gain details of its past performances and future expectations. Here, Semantic Software puts into
consideration its past performance and also incorporates their missions, values and goals both
present and in the future. After putting all this in a report we are able to know the Semantic
Software’s health(Teigeler & Hahne, 2014). . There are three types of analysis in company
analysis namely; internal, external and ratio analysis. Internal and ratio analysis will be used by
Semantic Software to gain insight into gaining market share and evaluate the company’s
financial status to gauge the companies past and future performance. External analysis will be

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done on rival firms to gain knowledge on their SWOT and improve where necessary and take
advantage of their weakness.
3.2 Market analysis
This involves the evaluation of the market Semantic Software seeks to penetrate in a bid to gain
insight of the markets’ dynamics and reason for its attractiveness. It involves qualitative and
quantitative evaluation of the USA market. It looks at competition, customer buying patterns,
market size (number of consumers of the service), quantity of sales volume and requirements for
entry into the market and barriers restricting entry. Since the company will be offering similar
services to its rivals, it has to look into product differentiation so at to make their products look
more attractive. Market analysis includes the following:
i. Political environment
In the international business plan, political environment refers to activities the foreign
government (in this case USA) undertakes that may positively influence or hinder business
operations in their country of jurisdiction. USA is a free economy and therefore this means that
there is minimal or no political interference in their business environment and that the economy
is mostly influenced by the laws of demand and supply. Also, it USA have policies that
encourage Foreign Direct Investment therefore there are minimal restrictions for entry of foreign
companies into the American market. The USA also enjoys a stable political environment
meaning that there will be no interruption in the businesses or insecurity for their assets and
employees.
ii. Regulatory environment
These are rules and regulations that are set by the authorities that govern how businesses are to
be conducted. In the USA, since it is a federal state, rules and regulations pertaining to business
operations are governed differently since it constitutes of 50 States and each State has its own
laws governing the regulation of businesses in their particular areas jurisdiction. Semantics
Software has to review all the fifty states and see which states are feasible to establish their
business and which are not(Cai,et al ,2014)..

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iii. Economic environment
In this case, Semantic Software will focus on current and future trends and conditions. The USA
GDP has been expanding thanks to tax cuts and increased government spending. This means
there is more disposable income in the hands of the public. Inflation is also very low meaning the
prices of commodities is relatively cheaper making them more affordable to wide range of
potential customers (Teigeler & Hahne, 2014). Also there has been a rampant increase in the use
of internet and e-business meaning that the consumers have confidence in the e-business
platform. Also, online payment services like PayPal have been on the rise meaning that that there
is a lot of on line business happening. This means it is safe to invest in the country.
iv. Social and cultural environment
These are set of behaviors and norms that exist in a given population. The values and attitudes of
American consumers fluctuates very often meaning tastes and preferences change quite often.
That is to mean the Semantic Software Company must always be updated with what is trending
so as to enable it adapt to the changing trends it if the business is to stay relevant.
v. Demographic environment
These are trends that can be used to identify the consumer preference and buying behaviors so as
to identify the target market group. In the USA women tend to spent much on e-commerce with
58% than men who account for 42% of overall online shopping. The age group of men focused
on e-commerce ranges from 18 years to 34 years and they do most of their shopping online. On
the hand, men tend to be more price conscious than women. The company needs to come up with
a balance to in exploring the two genders to the maximum.
vi. Technological environment
Technology is an art that requires application of science. Technological environment are ways in
which products are upgraded to match what is trending so that they cannot be obsolete with the
rapid evolving and advancement of technology. USA is a country well endowed with technology
and it keeps on advancing frequently thus the Semantic Software Company has to be on their

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toes with regards to technology. Also, since this is a software company and given the rise of
cyber crime in the USA it has to be upgraded frequently with top tier security measures to
enhance the security of both the potential customers and the Semantic Software Company.
vii. Physical environment
These are infrastructural indicators that affect and support a business. They may be referred to as
touchable and non touchable materials around a business which include land, air and buildings. It
should be noted that a healthy and clean environment is crucial for the well being of the people
around it. With regards to this, the USA has adequate infrastructure which meet world standards
to support the business. The physical environment includes network connection which is crucial
to the company and in USA it is very strong. This also means that their employees are able to
access world class services like housing and transport network thus making them more
productive.
3.3 Nature and extent of demand
Extent of the market is directly proportional to the nature of demand in the given market. The
extent of the market usually depends on the nature of the commodity, that is; whether the product
is perishable or non perishable. Since Semantic Software is to offer services based on technology
which in non perishable since it is a service that is regularly updated, then the extent of the
market is huge. Since the Semantic Software tend to focus on the bio-medical industry which
entails online diagnosis of a patient’s symptoms and prescription, it has found responses from
questionnaire that the product is in demand due to the distance, expenses and time involved in
visiting hospitals for medical care that can be deemed as not quite critical and doesn’t need the
attention of a doctor.
3.4 Product category stage of product life cycle
All business passes through four main stages as elaborated below:
a) Introduction stage – this is where the company launches a new a product in the market and it
could be the most expensive. Semantic Software is in this stage of product life cycle.

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b) Growth stage – here, the company has started its operations and its main trait is recording of
sales and profits (Stark,2015).
c) Maturity stage – at this stage, the company is already well established in the market and is
has a goal of maintain the share of market it holds (Liao,et al, 2015). Here competition is
stiff and is characterized by vigorous advertisement and product differentiation.
d) Decline stage – here, the market is shrinking due to factors such as entry of new players in
the market.
Semantic Software has to take into consideration of all this stages so as to have counter measure
for each of the stages.
3.5 External analysis
It involves looking at the wider business environmental (micro environment)factors also known
as PEST analysis that affect a business and that the business has little or no control over for
which include:
i) Political - this include factors such as government policies which include taxation
and interference in private business. Factors such as elections dates and government
regulation on corporate policies (Cai,et al ,2014).
ii) Economic factors and this include rates of inflation, level of unemployment and
stability of the foreign country’s currency among others.
iii) Social – cultural – this are factors such as the population growth rate, taboos and
lifestyles of the potential customers that may influence the way of business of the
company.
iv) Technological factors which include new technologies emerging or being used by
rival companies.
It is very important to consider the PEST analysis as it helps the company identify business
opportunities that may fail to materialize due to reasons which are beyond control of the
company. A PEST analysis should help the company come up with measures which it will put
into place to try and navigate these external forces that affect their business.(Ho,2014).

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3.6 Competitor analysis
Competitors are business rivals who offer the same services as Semantic Software. It is critical
to monitor their activities so as not to lose clients to them. The more the similarity in the
products offered, the stiffer the competition will be. In a free market like the USA competition
may be perfect, oligopolistic, monopolistic or monopoly. In this situation, the completion is
monopolistic since the rival firms offer similar products that are differentiated but serve the
same purpose.
Semantic software operates in the Information Technology software industry particularly
dealing with artificial intelligence. It involves feeding a computer with information and with the
data already installed in it, the computer will “think” and through its search engines, the
computer will filter the information providedand will give you a particular answer to the
question asked. Via regular updating, the computer can be said to be “learning” to adjust to new
needs and changing trends. The industry is particularly important to the medical industry in
synchronizing patient information, intelligence community in profiling people, finance industry
in integration of data and adding meaning to it without any human interception. Semantic
Software main competitors in the USA include, Cambridge Semantics, IBM Watson, Amazon
and theGoogle and Yahoo.
The huge and main advantage of Semantic Software is that it is an already well established
company dealing in semantics and is currently leader Australia in artificial intelligence
technology. It also has a large capacity in its servers to accommodate many users without delays.
Also, it search engines are advanced and filter data to give only what is relevant to the client.
The company seeks to make a breakthrough in the bio-medical industry where patients will not
have to go to hospital for diagnosis but instead will get a detailed prescription and diagnosis
from Semantic Soft ware.
Following the response of questionnaires from potential customers, they view the product in a
positive way especially due to the bio-medical product (“digital doctor”) which will be a huge
breakthrough.