APPENDIX-III MARKETING (MARKETING MIX AND BCG) Current market standing: HCC is currently doing business at domestic level.

Businessmen from America, European and all others countries are importing products to their countries for further sale. Its annual sale is around.5million but sale is expected to decline this year as many of the items bought by the American and European did not sale out due to the economic crises. According to the BCG Model, the companys current standing is identified based on the observation that a companys business unit can be classified into four categories based on the combination of Market growth and Market share relative to the largest competitors. In this particular case the company has no competitors the sale decline is due to economic crises and not due to the competitors. The company executive has thus decided to consider anticipated sale declined as an opportunity and to internationalize the business as a business strategy to spread the anticipated loss and convert it into a profit generated business. For this purpose the Uppsala model will be followed to internationalize the business. Initially ansoff business strategy model will be worked out to identify the best suitable business strategy. The BCG Growth-Share Matrix The BCG Growth-Share Matrix is a portfolio planning model based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor. The growth-share matrix thus maps the business unit positions within these two important determinants of profitability. BCG Matrix is shown on next page This framework assumes that an increase in relative market share will result in an increase in the generation of cash. The position of a business on the growth-share matrix provides an indication of its cash generation and its cash consumption. The cash required by rapidly growing business units could be obtained from the firm's other business units that were at a more mature stage and generating significant cash In this particular case we presume that Halloween Monster & Fluffy Easter Bunny are taken as new products having potential for rapid growth to become star and eventually Cash Cow. Father Christmas & Bauble are taken as Cash Cow products. .

BCG Growth-Share Matrix

Halloween Monster & Fluffy Easter Bunny: products are presumed to be the question mark having potential to grow rapidly and become star quickly with the start of business in new international market. These products will consume large amounts of cash at the beginning and do not generate much cash. These products have the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. Star Products generate large amounts of cash because of their strong relative market share. Father Christmas & Bauble (Cash Cow Products): as leader product in a mature market, which exhibits a return on assets that is greater than the market growth rate, and thus generates more cash than they consume. Father Christmas provides the cash required to turn (Halloween Mask and Fluffy Easter Bunny) question marks into market leaders, to cover the administrative costs of the company, to fund research and development, to service the corporate debt, and to pay dividends to shareholders. Because the cash cow generates a relatively stable cash flow, its value can be determined with reasonable accuracy by calculating the present value of its cash stream using a discounted cash flow analysis.