Welingkars (Deim) International Marketing

WELINGKARS (DEIM) INTERNATIONAL MARKETING
INTERNATIONAL MARKETING
International marketing in simple words is marketing carried on across national

boundaries.
According to American Marketing Association: “ International marketing is

the multinational process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchanges
to satisfy individual and organizational objectives.
TONY Electronics 1
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
Tony Electronics manufactures a varied variety of cameras. We have our

manufacturing plant in Mumbai, India. Tony Electronics’ mission is to
apply our unique digital imaging technologies to advance the ability of
people to communicate with images at affordable costs. Our strategy is
to incorporate our imaging technologies into Tony’s products and
provide path breaking solutions in imaging field. We will also strive to
adapt our technologies to serve the consumer photo imaging mass market
by developing image correction and enhancement software utilities that
can be used in consumer imaging applications.
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
TONY Electronics 2
The market for digital cameras is highly competitive with upgraded

products entering the market at a rapid pace the first mover advantage
has to be capitalized as fast as possible. Tony has its competitive
advantage in developing innovative products but due to limited reach it
has been unable to commercialize the innovations. The conclusion is that
Tony Electronics needs to enter the markets and expand its reach to
maximize its revenue and profits. However, even with strategic change,
the spirit of innovation will remain intact because that is what has made
Tony Electronics grow and would make it stay strong. Asian markets
have attracted world attention in recent times due to increasing
purchasing power and consumption of developing nations thus
considering the market potential for sales, demographics, geographical
advantage and regulations it has been found that Srilanka and Singapore
are good latent markets for Tony.
Factors to be considered while selection of a market:
TONY Electronics 3
1. Status of base country :
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.
2. Restrictions for Importing Country:
There are no restrictions on camera imports in Sri Lanka. Infact,

camera imports are encouraged due to flourished tourism. Tourism
industry is famous and flourishing in Lanka as well in Singapore. There
are not much rules and regulations laid down on electronic imports in Sri
Lanka hence there are no restrictions on imports.
3. Competition .
Product, planning, strategy, market selection, market

segmentation are the pillars of the International Marketing. Mainly, the
product should be strong enough to face international competition where
there are players all over the world. We have done market survey and
market research on the demand as well as expected quality and price of
the camera and accordingly planned and designed our product. SWOT
Analysis has also proved to be helpful.
4. Political/ Economic/Financial risk :
The ultimate objective of exports is making money. Any business

cannot survive without the risk factor. Political risk involves the result
of our exports to the government of India. It should be profitable to them
too. It also involves changes in government, political stability etc.
Financial risk involves safe custody of the goods, sound political and
economic stability also affect finance eventually.
TONY Electronics 4
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:
Our product, camera will be purchased by local people of Lanka and

Singapore as well as the tourist out there. The basic objective is to
promote camera exports, which very few Indian companies have entered,
and introducing our technology world wide at reasonable rates.
Expansion, diversification etc will determine the selection of a market.
Sri Lanka
TONY Electronics 5
External & Internal Environment: Sri Lanka
1. Social environment:
Sri-Lanka has a pleasant tropical climate. It is a multi-ethnic; multi-

religious country with a diverse and rich culture with a total population
of about 20.4million.Sri Lanka all over the world is famous for its
temples, beaches, gardens, and their culture. Because of the beauty of Sri
Lanka, tourism has flourished considerably. This again creates a
favorable climate for TONY to enter and survive into Sri Lankan market.
To catch the beautiful site of beaches, gardens and temples, camera is
the best thing to capture those memorable moments. There is a
continuous increase in the demand for camera by the local people of Sri
Lanka as well as the tourist. People in Sri Lanka are not ready to accept
very expensive Products. A product ranging anything from Rs. 5,000-
20,000 would be accepted.
- Population: 20,238,000 (2009)

- Religions: Buddhism, Hinduism, Islam, Christianity
- Government system: Executive President and Parliament
- Languages: Sinhala, Tamil and English
- Work week: Monday to Friday.
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
TONY Electronics 6
the chances of the company to Prosper.’ Is always the notion of any

company before exporting. As 92% percent of the population is literate,
one will surely look forward to use technically advanced products and
electronic products will, gain a better market in Sri Lanka.The standard
of living is moderate .
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
TONY Electronics 7
Sri Lanka and hence all documents, agreements are to be prepared in

English and hence no extra cost for translators and no complications as
English is well understood by Indian’s as well as Sri Lankan people.
6. Strategic Location :
Its location is also beneficial to our company as our company is situated

in South and hence exporting goods through sea will be beneficial and
distance covered will also be less and hence the time taken. This will
save both money and lead time of the product. Nearer the distance the
better as the risk involved will also be less.
9. Quality Infrastructure Facilities - the best in South Asia
- A modern international airport
- Well established and experienced cargo and courier operations.
The Sri Lankan government now encourages local and foreign private
investment in the country's infrastructure.
Singapore
TONY Electronics 8
The Singapore economy is an example of a vibrant free-market economy

that is developing at a rapid pace. The per-capita income of the country
is very high and it has been supported and strengthened by export
activities and tourism. The main goods that exported from the country
are high-tech products such as semiconductors and consumer electronics.
A snapshot of the Singapore economy in 2007:
GDP-purchasing power parity- US $222.7 billion
GDP-real growth rate - 7.5%
GDP per-capita (purchasing power parity) US $48,900
The population of Singapore as of 2008 was 4.84 million, of whom 3.64

million were Singaporean citizens and permanent residents (termed
"Singapore Residents"). Singapore is a popular travel destination,
making tourism one of its largest industries. About 7.8 million tourists
visited Singapore in 2006. This will again add to advantage of exporting
to Singapore for Tony.
Sri Lanka and Singapore are favorable destination as Srilanka falls in

General Agreement for Tariff and Trade (GATT ) and SAARC. Singapore
on the other hand falls under CECA (Comprehensive Economic Co
operation Agreement ). Tariff concessions can be obtained for DIGITAL
STILL IMAGE VIDEO CAMERA under HS code ex-85254000.
Trade Relations and Agreements
The South Asia Preferential Tariff Arrangements (SAPTA) came into

force in December, 1995 of which India and Srilanka are members.
SAARC member nations have also resolved that SAPTA should
TONY Electronics 9
eventually progress towards the South Asia Free Trade Arrangement

(SAFTA). Free Trade Agreement between Sri Lanka and India which was
signed in December 1998 also can act as a benefit.
”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
New products at affordable price
TONY Electronics 10
Established player in the local market
Patented technology
Weaknesses
Absence of strong brand name in global market
Limited product portfolio
Limited funds
Opportunities
Untapped market
Growing consumer population
New product
Threats
International Competition – Price war
Product Duplicates
TONY Electronics 11
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.
TONY Hyper-shot® DSC-S40 (8.1Megapixel)
Salient Features of TONY DSC S40
• 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
TONY Electronics 12
• 32 MB internal memory.
Segmentation Targeting and Positioning
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.
TONY Electronics 13
MODES OF ENTRY
1) Channel intermediaries – Wholesalers
 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
 A wholesaler will often take on the some of the marketing responsibilities.

Many produce their own brochures and use their own telesales operations.
 They provide storage facilities.
2) Channel intermediaries – Retailers

 Retailers will have a much stronger personal relationship with the consumer.
 The retailer will hold several other brands and products. A consumer will expect
to be exposed to many products.
 Retailers will often offer credit to the customer.
 Products and services are promoted and merchandised by the retailer.

 The retailer will give the final selling price to the product.
3) Channel intermediaries – Internet
The Internet has a geographically disperse market.
 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.
 Use e-commerce technology (for payment, shopping software, etc)
TONY Electronics 14
 There is a paradigm shift in commerce and consumption which benefits

distribution via the Internet
Distribution and Sales Channels
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.
Distribution channel: It is mostly flexible according to market condition. But mostly

commonly followed distribution channel is:
Tony Electronics
Wholesaler
Retailer
TONY Electronics 15
Consumer
Selling Factors and Techniques

Price is generally the most crucial factor in selling. Increasingly, however, the quality of
the product and after-sales service is becoming important selling factors in the Sri Lankan
and Singaporean market. Tony products have a reputation for high quality. Advertising
and participation in sales promotions and other trade events are often helpful for raising
consumer awareness and gaining market share.
Advertising and Promotion

Advertising in local newspapers, magazines, TV and participation in sales promotions
and collaborating with other firms for PR are often helpful in raising consumer awareness
and gaining market share. There are numerous radio and TV stations and all accept
commercial advertising. Electronic magazines in Srilanka and Singapore are also a good
medium for advertising and promotion through which discount coupons valid for a
specific period can be made available to the public. We shall also collaborate with other
good brand names locally to enhance our brand image and use the other established brand
to leverage our position in the market.
Sales Service/Customer Support

After-sales service and customer support are becoming increasingly important factors in
selling in this market. TONY support services have proved successful over the years
wherever we have operated. So this would prove to be of great benefit to company in
attracting people towards its product and delivering value to the customers even after the
sale has been done. We aim to have a local customer service centre once the sales volume
is reached so that timely service can be provided. In case of insufficient capacity, local
authorized service centers can be formed via the franchising mode.
Pricing Products
TONY Electronics 16
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.
Import Export system for cameras
Imports of Cameras to destination countries are subject to custom duties. Automotive

parts are free trade items and are subject to customs duty and VAT.
1. Registration with EPC, ECGC, IEC Code etc.

2. Excise Exemption
3. Nominate CHA
4. Insurance of goods
5. Shipping Co finalisation
6. Customs Clearance and Loading
7. Receipt of goods at destination
8. Transfer to warehouse or the market.
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;
TONY Electronics 17
14. Central bank approval;

15. TT copy.
Budgeted Cost Sheet for Tony Electronics

Particulars Per Unit Cost Costs Total Costs
No of Units Approx. 6,000.00
Cost of Material
Lens 2,125.00 12,750,000.00
Battery 150.00 900,000.00
Panel 750.00 4,500,000.00
Circuit 1,050.00 6,300,000.00
Memory stick 100.00 600,000.00
Flash 150.00 900,000.00
Digital Screen 750.00 4,500,000.00
Bluetooth 650.00 3,900,000.00
Printing & Packing 200.00 1,200,000.00
Other Inputs 500.00 3,000,000.00
Total Cost of Material 38,550,000.00
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
TONY Electronics 18
Selling & Distribution

Transportation & Freight 135.00 810,000.00
CHA charges 40.00 240,000.00
Warehousing facility at importing country 15.00 90,000.00
Customs charges at importing countries 25.00 150,000.00
Advertising & Promotion 200.00 1,200,000.00
Pilferage & Breakage 20.00 120,000.00
Commission 5% on SP 450.00 2,700,000.00
Total Selling & Distribution Costs 5,310,000.00
Total cost of Goods in INR 7,916.66 47,499,980.00
Profit in INR 1,187.50 7,124,997.00
Sales in INR 9,104 54,624,977.00
Total cost of Goods in USD $165 $989,583

Profit in USD $25 $148,437
Sales in USD $190 $1,138,020
TONY Electronics 19
Conclusion
The above report provides a projected path for expansion of Tony

Electronics into new markets and taps the potential it has in its
innovative products. Any business cannot survive and grow without
developing and increasing its customer base. Tony has with itself a
strong product that has good potential in global markets. Although Tony
has limited funds to utilize for its expansion it can take calculated risks
and take commercial advantages of its new products and research and
development facilities and technological know how.
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.
TONY Electronics 20
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
(CECA : 356 ex-85254000 DIGITAL STILL IMAGE VIDEO CAMERAS)
 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
TONY Electronics 21
TONY Electronics 22

Welingkars (Deim) International Marketing

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WELINGKARS (DEIM) INTERNATIONAL MARKETING

International marketing in simple words is marketing carried on across national

According to American Marketing Association: “ International marketing is

Tony Electronics manufactures a varied variety of cameras. We have our

The market for digital cameras is highly competitive with upgraded

Factors to be considered while selection of a market:

1. Status of base country :

2. Restrictions for Importing Country:

There are no restrictions on camera imports in Sri Lanka. Infact,

Product, planning, strategy, market selection, market

4. Political/ Economic/Financial risk :

The ultimate objective of exports is making money. Any business

Our product, camera will be purchased by local people of Lanka and

External & Internal Environment: Sri Lanka

Sri-Lanka has a pleasant tropical climate. It is a multi-ethnic; multi-

- Population: 20,238,000 (2009)

the chances of the company to Prosper.’ Is always the notion of any

Sri Lanka and hence all documents, agreements are to be prepared in

Its location is also beneficial to our company as our company is situated

9. Quality Infrastructure Facilities - the best in South Asia

- A modern international airport

- Well established and experienced cargo and courier operations.

The Singapore economy is an example of a vibrant free-market economy

A snapshot of the Singapore economy in 2007:

GDP-purchasing power parity- US $222.7 billion

GDP-real growth rate - 7.5%

GDP per-capita (purchasing power parity) US $48,900

The population of Singapore as of 2008 was 4.84 million, of whom 3.64

Sri Lanka and Singapore are favorable destination as Srilanka falls in

Trade Relations and Agreements

The South Asia Preferential Tariff Arrangements (SAPTA) came into

eventually progress towards the South Asia Free Trade Arrangement

New products at affordable price

Established player in the local market

Absence of strong brand name in global market

Limited product portfolio

Growing consumer population

International Competition – Price war

TONY Hyper-shot® DSC-S40 (8.1Megapixel)

Salient Features of TONY DSC S40

Segmentation Targeting and Positioning

1) Channel intermediaries – Wholesalers

 A wholesaler will often take on the some of the marketing responsibilities.

2) Channel intermediaries – Retailers

 Retailers will often offer credit to the customer.

 Products and services are promoted and merchandised by the retailer.

3) Channel intermediaries – Internet

The Internet has a geographically disperse market.

 Use e-commerce technology (for payment, shopping software, etc)

 There is a paradigm shift in commerce and consumption which benefits

Distribution and Sales Channels

Distribution channel: It is mostly flexible according to market condition. But mostly

Selling Factors and Techniques

Advertising and Promotion

Sales Service/Customer Support

Import Export system for cameras

Imports of Cameras to destination countries are subject to custom duties. Automotive

1. Registration with EPC, ECGC, IEC Code etc.

14. Central bank approval;

Budgeted Cost Sheet for Tony Electronics

Selling & Distribution

Total cost of Goods in INR 7,916.66 47,499,980.00