Marketinn Plan for Muji
Marketing Plan for MUJI
in
India
MKTG2010H
YIP TSZ CHUNG (SID: 1155000976)
21st December, 2010
1
Table of Content
Executive Summary Current Market Analysis - Macroenvironment Current Market Analysis - Customer Market Description Product Review Competitive Review Channels and Logistics Review Marketing Objectives Marketing Strategies - Product Marketing Strategies - Price Marketing Strategies - Place Marketing Strategies - Promotion Execution Plan Budgets Controls Appendix - References
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Executive Summary MUJI, a Japanese retail company which sells a wide variety of household and consumer goods, is distinguished by its concept of simplicity and emphasis on environmental friendly stance. India has a fast-growing economy and more foreign companies are investing there. India has a potential yet growing market of young generation from middle-to-high-income households, with increasing penetration rates of internet and social media. This marketing plan is focused in market development in India with existing MUJI products. It seeks to introduce MUJI as a new and unique brand in India, generate sales and let India take up an important part in the MUJI’s Asian market. The plan is on one-year basis. It has to be reviews periodically as the market in India is volatile and fast-changing. It is expected that MUJI will generate net sales of US$13.3 million and profit of US$0.86 million in the first year (excluding the planning period) in this new and potential market. Current Market Analysis – Macroenvironment PESTLE analysis Political. India is not very politically stable but currently at an acceptable level. It has adapted restriction on Foreign Direct Investment (FDI). Foreign single-brand retailers cannot wholly own their companies and FDI is not allowed for multi-brand retails in India. The corporate tax rate for foreign companies in India is 41.2%, which is similar to that in Japan (40.69%) but higher
in
India
MKTG2010H
YIP TSZ CHUNG (SID: 1155000976)
21st December, 2010
1
Table of Content
Executive Summary Current Market Analysis - Macroenvironment Current Market Analysis - Customer Market Description Product Review Competitive Review Channels and Logistics Review Marketing Objectives Marketing Strategies - Product Marketing Strategies - Price Marketing Strategies - Place Marketing Strategies - Promotion Execution Plan Budgets Controls Appendix - References
1 1 2 4 6 6 7 7 8 8 8 9 10 10 10
2
Executive Summary MUJI, a Japanese retail company which sells a wide variety of household and consumer goods, is distinguished by its concept of simplicity and emphasis on environmental friendly stance. India has a fast-growing economy and more foreign companies are investing there. India has a potential yet growing market of young generation from middle-to-high-income households, with increasing penetration rates of internet and social media. This marketing plan is focused in market development in India with existing MUJI products. It seeks to introduce MUJI as a new and unique brand in India, generate sales and let India take up an important part in the MUJI’s Asian market. The plan is on one-year basis. It has to be reviews periodically as the market in India is volatile and fast-changing. It is expected that MUJI will generate net sales of US$13.3 million and profit of US$0.86 million in the first year (excluding the planning period) in this new and potential market. Current Market Analysis – Macroenvironment PESTLE analysis Political. India is not very politically stable but currently at an acceptable level. It has adapted restriction on Foreign Direct Investment (FDI). Foreign single-brand retailers cannot wholly own their companies and FDI is not allowed for multi-brand retails in India. The corporate tax rate for foreign companies in India is 41.2%, which is similar to that in Japan (40.69%) but higher
References: International Monetary Fund (2009). http:// www.imf.org/ Economic Times (2010). http:// www.economictimes.indiatimes.com/ Central Intelligence Agency (2010). The World Factbook. http:// www.cia.gov/ Deutsche Bank Research(2010). The middle class in India. http://www.dbresearch.com/ The Times of India (2009). http:// timesofindia.indiatimes.com/ Internet World Stats (2010). http://www.internetworldstats.com/ Indiastat (2010). http://www.indiastat.com/ Centre for Monitoring Indian Economy (2009). http://www.cime.com/ National Council for Applied Economic Research (2007). http://www.ncaer.org/ Global Information, Inc. (2008). India Shopping Trends 2008: Food & Grocery. http://www.globalinc.com Ryohin Keikaku (2010). http:// ryohin-keikaku.kp/eng/ Nielson (2007). Online advertising in India. Retrieved from http://www.pluggd.in/ 13