International Marketing-1

Assignment – A

Question 1. Write short notes on the following:
(a) World Trade Organization
(b) India Trade Promotion Organization
(c) International Product Life-Cycle

Question 2. Differentiate between the following:
(a) Balance of trade and balance of payment
(b) Tariffs and quotas
(c) Fixed vs. flexible exchange rate system

Question 3. How do domestic marketing and international marketing differ for an Indian manufacturer of ready-made garments when he wishes to sell in U.S.A.? Discuss with special reference to cultural and legal dimensions.

Question 4. (a) Debate the issue of global vs. adopted products for an international markets.
(b) Give two examples where MNCs in India have adopted the product to Indian conditions.
(c) Give two examples where MNCs in India have sold the same product in India but have developed promotional strategies to suit local requirements.
(d) Give two examples where MNCs in India offered in standardized product and failed.

Question 5. Tata Tea have recently acquired Tetley Tea Company of UK. Now Tata Tea wish to explore the possibilities of marketing tea bags of Tetley in Asian countries. As a researcher you have been asked to find out the scope of the market and the appropriate marketing strategies.
What questions would you need to ask to understand the market?

Assignment – B

This assignment has three questions. You have to answer all of them. Read the questions very carefully before attempting the answers. Irrelevant answers will earn no credit.

Question 1. Write short notes on the following:
1. IMF
2. Transfer pricing
3. Channels of Distribution
4. Trade fairs as tools of promotion

Question 2. Differentiate between the following:
1. Direct and indirect marketing
2. Advertising vs. personal selling in international markets.
3. Fob pricing and Cif pricing

Question 3. Many multinational brands that come to India after 1991 have not really been successful.
What has gone wrong? Discuss in detail.

Case Study

The Govt. of India threw open the Indian automotive industry for foreign investment in 1991, though the passenger car industry was actually delicensed in 1993. A whole lot of auto majors from all over the map, lured by illusory fantastic size of the market, decided to move in creating enormous capacities mostly for the wrong cars.

After the initial euphoria subsided, Daewoo and Hyundai soon realized that there was a change in market sentiment; they came out with Matiz and Santro. Meantime, Tata also decided to introduce Indica, fueled perhaps more by zingoism and less by the technical competence of the market.

In fact a major reason behind the failure of these cars is that the industry does not seem to be particularly concerned about product attributes, the adoption of which will help it expand the market without having to incur costs that cannot be absorbed. These companies have not been very clear on the basis used for bringing in their models in India.

FIAT, for instance, adopted the following criteria initially:

It thought that small and mid size cars represented profitable, expensive niches.

Road conditions dictated the kind of suspension to be used.

Right hand driving had a significant bearing on model transfers.

Space was another factor, since Indians had a large family and lug around lots of luggage.

Fuel preference and mileage concerns

Consideration of components

The company, in the initial stages, did not believe that other issues such as price and engine power mattered all that much to the Indian car buyer. After initial set back, the company says that it is now taking into account more and more prevailing criteria such as low pricing, consumer preferences that are changing and even accommodating not so good looking cars, competition, environmental soundness, high-tech engines and a wider product range.

Likewise Awasthi of Daewoo Motors says that the demand potential in India was the biggest attraction. At the same time, entry timing was critical in establishing leadership. In the absence of any historical trend of growth, if was difficult to assess either the actual demand base or the segmentation. So the global players had two choices. First, bring to India the lowest end products which are affordable and competitive in the Indian context on price front, second bring in a product with a view to making India a sourcing base. In the latter case the product has to be contemporary. If initially a player did not come in with a small car that was because of the fact that it did not have a handle on the Indian market when it first came in plus, it knew it did not.

What about Hyundai? Well, Gandhi, the Hyundai President, says that post liberalization India offered, intuitively, a vast potential. Presence in the market was important. Many of the major automakers came in only as assemblers, Ford and Hyundai being the exceptions. Market analysis revealed that the scope was better for small cars. Hence Hyundai entered India with the Santro. Those who set up an assembly unit and brought in CKD kits realized that the landing cost of the kits had pushed up the price of their assembled cars. And there was not much of a market for such high priced cars with the technology of the eighties.

Note:

Read the case once more. Now answer the following questions.

Question 1. Give three major reasons as to why global players did not succeed in the Indian market.

Question 2. Do you think that these car makers have learnt their lesson now? Give reasons for your answer.

Question 3. Do you think that a car specifically designed for India and at a price acceptable to Indian buyer, will break the barrier of stagnant sales? Do you know of any car model that has come out of this?

Assignment – C

Note: Answer each question as per instruction

A. Can you say where is following MNC’s headquarters?
1. Unilever
2. Oracle
3. Bata
4. Pepsico
5. Xerox
6. Pierre Cardin
7. Daewoo
8. Mercedes Benz
9. Nokia
10. Nestle

B. Name the product category to which the following multinational brands belong:
1. Qualis
2. Emirates
3. SAS
4. Zodiac
5. Longines
6. Polo
7. Versace
8. Gucci
9. Cahmbor
10. Tang

C. Indicate whether the following statements are true or false:
1. WTO has replaced GATT
2. World Bank is owned by USA
3. Acer is an American Multinational Company
4. India follows fixed exchange rate system
5. Comparative advantage theory of international trade is no more valid
6. Rupee is convertible on capital account in India
7. Flexible exchange rate and convertibility are the same thing
8. Excalibur is a foreign brand in garments category
9. Travel and tourism is the highest net foreign exchange earner for India.
10. India is against discussing labour related issues at WTO forum.