Welingkars (Deim) International Marketing
Welingkars (Deim) International Marketing
Welingkars (Deim) International Marketing
INTERNATIONAL MARKETING
TONY Electronics 1
WELINGKARS (DEIM) INTERNATIONAL MARKETING
TONY Electronics
Company Profile
Name Tony Electronics
Business Type Cameras
Year of Establishment 1992
Export Markets Srilanka and Singapore
Product Digital Cameras
Address BKC, Mumbai
The first thing that comes to minds of the people for the company and
products of Tony is its high-technology-innovative gadgets with
reasonable rates. The current Tony Corporation has its unique culture
firmly rooted under the guidance of its two founders, Suresh Shah and
Rajesh Kulkarni, both dedicated engineers and geniuses above their
business talents. Their strong business acumen has helped Tony become a
strong player in the Indian market.
Tony‘s financial difficulties are tied with it right from the start up as the
founders have accumulated loans to enable research and development and
business expansion. Thus Tony is somewhat a cash starved organization
with huge growth potential.
Market Summary
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Indo –Sri Lanka free trade policy provides smooth exports. Relations
between India and Sri Lanka, politically as well as socially are smooth.
Government rules and regulations, Tariff Barriers, non- tariff Barriers
are also favorable.
3. Competition .
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5. Technology:
We have to see the technological requirement and see that we can adapt
and modify our technology according to their technology.
6. Objectives:
Sri Lanka
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1. Social environment:
2.Demographic environment:
Sri Lanka is the 53rd most populated nation in the world, with an annual
population growth rate of 0.79%. ‘Larger the size of the country better is
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3. Technology:
Technology used in Sri Lanka is not yet fully developed. They believe in
how much will their product give by putting minimum expenses to
purchase it. Unlike Japan who believes in Use and Sri Lanka believes in
Use and Use till possible. The philosophy of the people is like Indians.
Sri Lanka lacks in technology and hence if they start manufacturing
cameras it will be expensive for them and hence they’ll prefer to import
it from a country like India which gives them better quality in less rates.
If they import it from developed countries then it will be costly .
4. Political environment :
Sri Lanka is the neighboring country of India. India respects its unity,
sovereignty and territorial integrity of Sri Lanka. India and Sri Lanka are
together in many trade treaties to encourage international trade. They are
in SAARC, GATT etc. These all agreements allow us to have trade with
Sri Lanka. These all agreements make our exports and their imports
easier and cheaper
5. Legal environment :
Legal procedures of exporting cameras from India to Sri Lanka are not as
complicated as it is to other countries. English is the legal language in
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6. Strategic Location :
The Sri Lankan government now encourages local and foreign private
investment in the country's infrastructure.
Singapore
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”Respective governments, India and Sri Lanka had agreed to extend the
Indo Lanka Free Trade Agreement to a Comprehensive Economic
Partnership Agreement (CEPA) with the scope of furthering the free and
preferential trade in goods by incorporating economic cooperation in
areas of preferential trade in services and enhancing cooperation in
investment and to take up specific issues,”
In March 2000, India and Sri Lanka finalized a free trade agreement
(Indo-Sri Lanka Free Trade Agreement), which provides for duty-free
entry as well as duty preferences for goods manufactured in the two
countries. India had provided duty free access to 4,150 items. Sri Lanka
has granted duty free access to about 1,100 items from India.
Our minister Kamal Nath visited Singapore on the 8th and 9th of
September to discuss CECA (Comprehensive Economic Cooperation
Agreement) that will form the basis of a Free Trade agreement between
the two countries. The Singapore industry looks optimistic on
investments in India. The Singapore government wants Singapore to be a
trading hub for Indian products and services and has assured higher
investments in the India. The interest in the Indian market has been on a
high in the island nation that has invested S$ 150 billion abroad.
SWOT Analysis:-
Strengths
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Patented technology
Weaknesses
Limited funds
Opportunities
Untapped market
New product
Threats
Product Duplicates
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Product Specification:
Initially we plan to export one of our innovative cameras the slim and stylish
Cyber-shot® DSCS40 that is designed for comfortable use anywhere and it has 8.1
mega pixels and Bluetooth technology. The product has been very well
accepted in India, and has good potential for global markets.
• 8.1 Mega pixel Super HAD CCD. Absolute clarity and resolution
• 550 - Shot Battery System. Longest battery life of any camera in its class
• Bluetooth for easy sharing of pictures
• 3.5 inch touch screen for easy selection
• Slim and Compact Design. Comfort and Convenience in an ultra-portable camera
• Scene Selection Modes
• Anti Blur Resolution
• Smile Detector Facility
• 4X Digital Zoom
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• 32 MB internal memory.
Segmentation
The camera has been designed and priced appropriately keeping in mind the tastes and
preferences of young consumers in the developing countries i.e. Srilanka and Singapore.
The age group of 25-35 years is both earning and spending population for any economy
and the most attractive for any marketer. Developing economies are characterized mainly
by presence of a large growing middle class population with limited amount spending
power and good product knowledge. Increasing literacy rate in developing countries has
led to increase in customer awareness. Liberalisation in most of these economies has
provided consumers with choices and the new consumer is now a smart shopper. Both
males and females have now become a part of the working population and wise enough
to make better choices.
Targeting
Our target audience is mainly the urban middle class earning population in the age group
of 25-35 years who are well educated and literate with good purchasing power to buy the
latest technological gadgets like digital cameras.
They are tech savvy males and females who like to flaunt electronic gadgets at every
occasion.
Positioning
The product Tony Hypershot shall be positioned as the “latest technology at affordable
price”. It will therefore be a product for aspiring masses who want to emulate the classes.
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MODES OF ENTRY
They break down ‘bulk’ into smaller packages for resale by a retailer.
They buy from producers and resell to retailers. They take ownership or
‘title’ to goods whereas agents do not
The retailer will hold several other brands and products. A consumer will expect
to be exposed to many products.
The main benefit of the Internet is that niche products reach a wider audience.
There are low barriers low barriers to entry as set up costs are low.
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International trade is centered in the capital city, with more than 90 percent of all imports
and exports passing through the port of Colombo. While there are many medium to small
importers, 20 to 30 relatively large firms handle the bulk of international traffic. Only a
few importers control distribution networks elsewhere in the country; most simply
wholesale directly to regional distributors or to retailers. The Government's role in trade
and distribution has decreased a great deal over the past few years.
Use of Agents/Distributors:
Local agents would be selected on the basis of financial stability and technical
capability. As the largest trading houses represent many (sometimes competing) foreign
principals, medium and smaller firms are becoming more attractive. Cameras require
stocking or servicing, so large firms are often better. Sales commissions paid to agents
range from 1 percent to 5 percent, depending on sales volume and the product price
committed. Agency relationships can be terminated for inefficiency, misappropriation or
inability to fulfill contractual obligations.
Tony Electronics
Wholesaler
Retailer
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Consumer
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Pricing Products
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Price is the most critical buying factor, should be on par with the prevailing market
price. A local agent or distributor provides helpful suggestions and has market
intelligence to enable companies to make informed pricing decisions. Tony is offering
special, low introductory prices on consumer products to gain a foothold in the market
and develop customer awareness and loyalty.
Documents Required.
1. Letter of credit;
2. Invoice;
3. Packing list;
4. Weight and measurement certificate;
5. Bill of lading;
6. SAPTA certificate;
7. Certificate of origin;
8. Proforma invoice;
9. Insurance documents/policy;
10. Relevant approval;
11. Customs entry form;
Supply and demand survey on automotive components – Sri Lanka
12. Delivery order;
13. Arrival notice;
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Factory Cost
Electricity & Water 120.00 720,000.00
Repair & Maintenance 50.00 300,000.00
Depreciation 33.33 199,980.00
Total Factory Cost 1,219,980.00
Administrative Cost
Salaries & Wages 55.00 330,000.00
Office Expenses 35.00 210,000.00
Telephone & Fax 20.00 120,000.00
Insurance 30.00 180,000.00
Rent 80.00 480,000.00
Total Administrative Cost 1,320,000.00
Financial Cost
Interest on Loan of Rs. 1 cr. @ 11% 183.33 1,100,000.00
Total Financial Cost 1,100,000.00
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Conclusion
Tony although does not have a brand name currently in the vast global
markets it can achieve its vision of becoming an MNC if its innovation
and marketing skills are utilized to full capacity. With a good product
and committed team at hand, Tony electronics should therefore leave no
stone unturned to grow and become a dominating player in the field of
imaging technologies.
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BIBLIOGRAPHY
(Webliography)
http://www.hardwaremag.com/2009/04/20/ifa-09-press-con-7-ce-growth-
in-asia-vs-4-worldwide/
http://www.hardwarezone.com/articles/view.php?cid=18&id=1750
http://www.hardwarezone.com/articles/view.php?cid=18&id=1750&pg=2
http://commerce.nic.in/ceca/toc.htm
http://exim.indiamart.com/free-trade-agreement/singapore.html
E-books on international marketing .
http://en.wikipedia.org/wiki/Singapore
http://www.economywatch.com/finance/Singapore-finance.html
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