International Marketing Swot Analysis
1.0 Executive Summary
The main objectives of this marketing plan is to evaluate the possibilities for May Soap to enter into the new market- Philippine. There are three possible market entry strategies, which are indirect exporting, direct exporting and joint venture. Direct exporting is more favourable as it provides greater control and this is important for expanding the business in future.
Most-Likely, for Lam Soon to enter into a new market like Philippine, may incur loss of around RM 25,000 for first year as the result of high advertising cost to create awareness for our product. However, this condition will not last long as Lam Soon will be able to increase the market shares year by year thus increase the sales revenue. The projected market shares for year one will be 10% and followed by 12% in year two and 14% in year three. The projected investment for first year will be estimated about RM 144,000. This includes operating expense and cost of good sold. However, we are able to get back more than 80% of the investment from the sales revenue in first year.
The investment required for second year will be around RM 126,800. In year two, we could get back the full amount of investment and gain more than 10% of the investment.
In year three, due to the familiarity of the Philippine environment, the increase of market shares and cut down of advertising cost, return on investment will be more than 30%. Returns are expected to grow year by year.
However, the future is hardly predicted. There are two other scenarios which are “Best-Case” scenario and “Worst-Case Scenario”. “Best-Case” scenario reflects the change of future that benefits our company. On the other hand, the “Worst-Case” scenario reflects the change of future which brings negative effects to our company.
2.0 Introduction
Our group has chosen Lam Soon Edible Oils Sdn. Bhd for our international marketing assignment. With four decades of experience and expertise in the area of soap
The main objectives of this marketing plan is to evaluate the possibilities for May Soap to enter into the new market- Philippine. There are three possible market entry strategies, which are indirect exporting, direct exporting and joint venture. Direct exporting is more favourable as it provides greater control and this is important for expanding the business in future.
Most-Likely, for Lam Soon to enter into a new market like Philippine, may incur loss of around RM 25,000 for first year as the result of high advertising cost to create awareness for our product. However, this condition will not last long as Lam Soon will be able to increase the market shares year by year thus increase the sales revenue. The projected market shares for year one will be 10% and followed by 12% in year two and 14% in year three. The projected investment for first year will be estimated about RM 144,000. This includes operating expense and cost of good sold. However, we are able to get back more than 80% of the investment from the sales revenue in first year.
The investment required for second year will be around RM 126,800. In year two, we could get back the full amount of investment and gain more than 10% of the investment.
In year three, due to the familiarity of the Philippine environment, the increase of market shares and cut down of advertising cost, return on investment will be more than 30%. Returns are expected to grow year by year.
However, the future is hardly predicted. There are two other scenarios which are “Best-Case” scenario and “Worst-Case Scenario”. “Best-Case” scenario reflects the change of future that benefits our company. On the other hand, the “Worst-Case” scenario reflects the change of future which brings negative effects to our company.
2.0 Introduction
Our group has chosen Lam Soon Edible Oils Sdn. Bhd for our international marketing assignment. With four decades of experience and expertise in the area of soap