NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: International Business
Internal Assignment Applicable for June 2023 Examination

Question 1:

You are a manufacturer of packaged sweets and salty snacks products from India and
are keen on expanding your business globally. Discuss the challenges of marketing your
product globally suggests measures to overcome them.?

Answer 1:

Introduction:

As a manufacturer of packaged sweets and salty snacks in India, expanding your business globally can
present both opportunities and challenges. Marketing your products in international markets requires
careful planning and consideration of various factors. This explanation will discuss the challenges of
marketing your products globally and suggest measures to overcome them, ensuring a successful
expansion of your business.

Challenges of Marketing Products Globally:

I. Cultural Differences: One of the significant challenges is adapting your products to different
cultural preferences and tastes. The flavors, ingredients, and packaging that work well in India
may not necessarily resonate with consumers in other countries. It is essential to conduct
market research and customize your products to suit the local preferences and cultural
sensitivities of the target market.

II. Regulatory Compliance: Each country has its own set of regulations and standards regarding
food labelling, ingredient requirements, and health and safety guidelines. Ensuring compliance
with these regulations can be a complex process, requiring thorough understanding and
adherence to the specific requirements of each market.

III. Distribution and Logistics: Establishing efficient distribution channels and managing logistics
for international markets can be challenging. This includes considerations such as
 transportation, storage, customs procedures, and finding reliable local partners or distributors.
Developing a robust supply chain strategy is crucial to ensure timely delivery and product
availability in foreign markets.

IV. Brand Awareness and Trust: Building brand awareness and establishing trust among
consumers in a new market can be a significant hurdle. Your brand may be relatively unknown
in international markets, requiring focused marketing efforts to create visibility, credibility, and
a positive reputation. Localization of marketing messages and utilizing appropriate
communication channels can help overcome this challenge.

Measures to Overcome the Challenges:

I. Market Research: Conduct thorough market research to understand the preferences, tastes,
and cultural nuances of the target market. This will guide product customization and ensure
alignment with local consumer preferences.

II. Localization Strategy: Customize your products, packaging, and marketing messages to
resonate with the target market. This includes adapting flavors, ingredients, and branding
elements to suit local tastes and cultural contexts.

III. Compliance and Quality Control: Invest in understanding and complying with international
regulations and quality standards. Seek professional advice to ensure your products meet the
necessary requirements and maintain consistent quality across markets.

IV. Strategic Partnerships: Collaborate with local distributors, retailers, or partners who have
knowledge of the target market and established distribution networks. Their expertise can
help navigate the complexities of distribution and logistics while providing valuable insights
into consumer behavior.

V. Brand Building and Marketing: Develop targeted marketing campaigns to build brand
awareness and establish trust in the new market. Utilize digital marketing, social media,
influencer collaborations, and local advertising channels to reach and engage with the target
audience effectively.

VI. Continuous Learning and Adaptation: Stay agile and open to feedback from the market.
Continuously monitor consumer preferences, market trends, and competitor activities to
make necessary adjustments to your products and marketing strategies.
Conclusion:

Expanding your packaged sweets and salty snacks business globally requires careful consideration of
the challenges that arise in international marketing. By conducting thorough market research,
customizing products to suit local preferences, ensuring regulatory compliance, building strategic
partnerships, and implementing targeted marketing efforts, you can overcome these challenges and
successfully establish your brand in global markets. It is essential to remain adaptable and responsive
to the unique characteristics and demands of each market, continuously refining your strategies to
achieve long-term success and sustainable growth on the global stage.

Question 2:

Critics of WTO including economists such as Dani Rodrik and Ha Joon Chang have
argued that WTO only serves the interests of multinational corporations, undermines local
development, penalizes poor countries and is increasing inequality. Comment on the above
and suggest the changes in your opinion can bring improvement to developing countries.

Answer 2:

Introduction:

The World Trade Organization (WTO) has been a subject of debate and criticism among economists
and experts. Critics, including economists Dani Rodrik and Ha Joon Chang, argue that the WTO
primarily benefits multinational corporations, hampers local development, imposes penalties on poor
countries, and exacerbates inequality. This explanation will comment on these criticisms and suggest
potential changes that can bring improvements to developing countries within the WTO framework.

Criticism of the WTO:

I. Serving the Interests of Multinational Corporations: One criticism is that the WTO's rules and
agreements tend to favor the interests of powerful multinational corporations. Critics argue
that these corporations often have more influence in shaping global trade policies, which can
result in unequal outcomes for smaller domestic industries and local businesses.

II. Undermining Local Development: Critics contend that the WTO's emphasis on free trade and
liberalization may undermine local industries in developing countries. They argue that
developing nations need the flexibility to protect and nurture their domestic industries to
promote economic growth and reduce dependence on imports.

III. Penalizing Poor Countries: Critics argue that the WTO's rules and trade agreements may
disproportionately affect poor countries, especially in areas such as agriculture. They assert
that stringent intellectual property rights and market access conditions can hinder the ability
of developing countries to support their own industries and access global markets.
 IV. Increasing Inequality: Some critics argue that the WTO's emphasis on market-driven policies
may contribute to widening income inequality both within and between countries. They
contend that trade liberalization can lead to job losses, wage stagnation, and a concentration
of wealth, benefiting the already prosperous while leaving the poor and vulnerable
populations behind.

Suggestions for Improvement:

I. Fair and Balanced Representation: Ensuring fair and balanced representation of all member
countries in the decision-making process can help address the perception of favoring
multinational corporations. This can involve reforming the governance structure of the WTO
to give more voice and influence to developing countries.

II. Special and Differential Treatment: Implementing measures that provide special and
differential treatment to developing countries can help protect their industries and promote
their economic development. Flexibilities in trade agreements, such as longer transition
periods and exemptions, can assist developing nations in adjusting to global competition.

III. Policy Space for Development: Allowing developing countries to retain policy space to adopt
measures that support their domestic industries and promote economic development is
crucial. This can include provisions that allow for selective protection of industries, promoting
technology transfer, and fostering innovation.

IV. Addressing Agriculture Issues: Reforming agricultural trade rules to reduce agricultural
subsidies in developed countries and providing support to farmers in developing nations can
help level the playing field. This can contribute to sustainable agricultural practices, food
security, and rural development in developing countries.

V. Enhanced Aid for Trade: Increasing financial and technical assistance to developing countries,
particularly in building trade-related infrastructure, enhancing capacity, and improving
competitiveness, can help bridge the development gap and enable them to participate
effectively in global trade.

Conclusion:

The criticisms leveled against the WTO by economists like Dani Rodrik and Ha Joon Chang highlights
important concerns regarding the organization's impact on multinational corporations, local
development, poor countries, and inequality. While the WTO has played a significant role in shaping
global trade, there is room for improvement. By addressing issues of representation, implementing
special and differential treatment, allowing policy space for development, addressing agriculture
concerns, and enhancing aid for trade, the WTO can better serve the interests of developing countries
and contribute to a more equitable global trading system. These changes would require collective
efforts and dialogue among member countries to ensure a fair and inclusive global trade regime that
benefits all nations, particularly those striving for economic progress and development.

Question 3:
Read the following case study carefully and then answer the questions that follow: Your firm
manufactures EV bicycles in India and wishes to market them globally. In spite of competition, you see
that South Africa has a huge potential and plan to expand your retail operations in South Africa.
Question 3a:
Explain your market entry strategy to launch the EV bicycles in South Africa.
Answer 3a:
Introduction:
As a manufacturer of electric (EV) bicycles in India, expanding your retail operations to South Africa
presents a significant opportunity for growth. However, entering a new market requires a well-planned
market entry strategy to ensure success. This explanation will outline a market entry strategy to launch
EV bicycles in South Africa, considering factors such as market analysis, target customers, distribution
channels, marketing approach, and competitive positioning.

Market Entry Strategy for Launching EV Bicycles in South Africa:

Market Analysis:
Conduct a comprehensive market analysis to understand the demand for EV bicycles in South
Africa. Evaluate factors such as market size, growth potential, customer preferences, local
regulations, and existing competition. Identify target segments and assess their purchasing
power, awareness of EV technologies, and willingness to adopt sustainable transportation
options.

Product Adaptation:
Adapt your EV bicycles to suit the preferences and needs of the South African market. Consider
factors like local infrastructure, terrain, weather conditions, and cultural preferences.
Customize features such as battery capacity, range, durability, and design aesthetics to align
with the target customers' requirements.

Distribution Channels:
Establish a robust distribution network to ensure wide availability of EV bicycles. Partner with
local retailers, bike shops, and distributors who have a strong presence and understanding of
the South African market. Explore e-commerce platforms and online marketplaces to reach
customers directly. Consider opening flagship stores or showrooms in strategic locations to
showcase the product and provide a hands-on experience.
 Marketing and Promotion:
Develop a targeted marketing and promotional strategy to create awareness and generate
demand for EV bicycles. Utilize digital marketing channels, including social media platforms,
online advertising, and influencers, to reach the tech-savvy and environmentally conscious
target audience. Leverage partnerships with environmental organizations and participate in
relevant events and exhibitions to showcase the sustainability aspects of EV bicycles.

Competitive Positioning:
Differentiate your EV bicycles from competitors by highlighting unique features, performance,
quality, and value proposition. Emphasize the benefits of using electric bikes, such as eco-
friendliness, cost savings, health benefits, and convenience. Offer competitive pricing and
attractive financing options to encourage adoption. Provide excellent customer service,
including after-sales support, warranty, and maintenance services, to build trust and loyalty.

Government Relations:
Engage with relevant government authorities and organizations to understand local
regulations, incentives, and policies that support the adoption of EVs. Seek partnerships or
collaborations with government initiatives promoting sustainable transportation and green
mobility. Compliance with local laws and regulations, including safety standards and
import/export requirements, is essential for a successful market entry.

Conclusion:
Expanding your retail operations and launching EV bicycles in South Africa requires a well-executed
market entry strategy. By conducting thorough market analysis, adapting the product to local
preferences, establishing a strong distribution network, implementing effective marketing and
promotion tactics, positioning the product competitively, and building relationships with government
authorities, you can increase your chances of success in this new market. Continuously monitor market
dynamics, customer feedback, and competitor activities to refine your strategy and capture the growth
potential offered by South Africa's market.

Question 3b:
Explain major global pricing policies. Which of these pricing policies would you consider while
launching the EV bicycles in South Africa?
Answer 3b:
Introduction:
Expanding a business globally requires careful consideration of pricing strategies to ensure
competitiveness and profitability. In the case of an Indian manufacturer of EV bicycles planning to
enter the South African market, understanding major global pricing policies is crucial for a successful
market entry. This explanation will discuss the major global pricing policies and identify which one
would be suitable for launching EV bicycles in South Africa, considering the competitive landscape and
market potential.
Major Global Pricing Policies:

➢ Market Penetration Pricing:

Market penetration pricing involves setting a relatively low price to gain market share quickly.
This strategy aims to attract customers by offering a cost advantage over competitors. It is
particularly effective when entering a new market with significant growth potential, as it
encourages initial adoption and creates a customer base.

➢ Price Skimming:
Price skimming entails setting a high initial price to capitalize on early adopters or customers
who value exclusivity and innovation. This strategy allows a company to maximize profits from
the initial sales before gradually lowering the price to attract a broader customer base. It is
often used for products with unique features or superior quality.

➢ Premium Pricing:
Premium pricing involves setting a higher price compared to competitors, and positioning the
product as a premium offering. This strategy relies on emphasizing product quality, unique
features, and brand image to justify the higher price. It targets customers who are willing to
pay more for perceived value, prestige, or a luxury experience.

➢ Competitive Pricing:
Competitive pricing focuses on setting prices in line with or slightly below the prevailing prices
in the market. The aim is to offer a comparable value proposition while gaining a competitive
advantage through price. This strategy is common in markets with intense competition and
price-sensitive customers.

➢ Value-Based Pricing:
Value-based pricing involves setting prices based on the perceived value delivered to
customers. It considers factors such as customer preferences, benefits, and the product's
unique selling points. By aligning the price with the value customers perceive, companies can
capture a fair share of the value they provide.

Pricing Policy for Launching EV Bicycles in South Africa:

Considering the potential of the South African market and the presence of competition, a market
penetration pricing strategy would be suitable for launching EV bicycles. By setting a relatively low
price, the company can quickly gain market share and establish a strong presence. This approach is
particularly effective when entering a market with significant growth potential and price-sensitive
customers.

Additionally, a value-based pricing strategy can be employed to highlight the unique features,
sustainability benefits, and value proposition of EV bicycles. By effectively communicating the
advantages of the product, the company can justify a higher price based on the perceived value it
offers to customers who value eco-friendly transportation solutions.

Conclusion:
When entering the South African market with EV bicycles, a combination of market penetration pricing
and value-based pricing would be effective. Market penetration pricing allows for quick market entry
and gaining a competitive edge, while value-based pricing emphasizes the unique features and
benefits of EV bicycles to justify a higher price. Continuous monitoring of market dynamics, customer
preferences, and competitor pricing strategies is essential to adjust the pricing policy and maintain a
strong position in the South African market.

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