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3.1. Producing a set of international marketing objectives for the falcon 8X
Without specific objectives, a firm cannot take any decision
to internationalise their product. Brazil’s aircraft market is very
competitive. Numbers of giant companies are operating their business in this
market. Hence, Dassault should add some unique features in their product.
Fortunately, the new Falcon 8X consists of some unique features than Embrear
jet. The unique features are long range fly around 6,450nm, more cabin, eight
seats and three engines (Davis, 2016). Some important objectives of
international marketing for the company new aircraft Falcon 8X are given below:
- Brazil is one the most rapid developing countries and a major business hub.
- The number of high income class people is increasing in Brazil thus they can bear the travelling fare.
- Falcon 8X has long range flying capability and three engines compared to other similar jet.
- Falcon 8X is a cost efficient aircraft than Embrear produced jet aircraft.
For these competitive advantages, Dassualt has decided to
sell Falcon 8X in Brazilian market.
3.2. Creating a plan to enter into Brazilian market
When a firm gains more competencies, it can take an
initiative to enter into foreign market. There are several methods entering
into foreign market mentioned by Thompson et al (2014), those are given below;
Exporting
In this method, a firm produces products in home country and
export products in foreign country. This is very effective entry modes in
international market. For example; falcon 8X can produce in France and then
export to Brazil.
Licensing
In this process, a firm give the permission to a foreign
firm produces their product against royalty fee. In other words, technological
know-how is transfer to a foreign firm in licensing. For example; Dassault can
handover falcon 8X technological know-how to Embraer against royalty.
Franchising
It this method, a firm (franchiser) give the give the
permission to a foreign firm (franchisee) using their brand and impose the
franchisor’s rules and regulations which are abiding by the franchisee. For
example, The Company can select Embraer as a franchisee of Falcon 8X aircraft.
Joint venture
In this method, parent company establishes alliance with a
host country’s firm and operates the business organisation with a new name. For
example; The Company can establish a joint venture and can operate in the name
of Dassaut-Embraer Inc.
Wholly owned
subsidiary
In this method, a firm purchases an existing firm in the
host country or build completely new firm in the host country. For example; Dassault
can build completely new production facilities in Brazil.
For the Falcon 8X, the most appropriate entry mode in Brazilian market
is exporting. Licensing and franchising are not possible because it requires to
handover technological know-how which mean The company need to handover their
technological know-how to Embraer, the only capable company in Brazil. Wholly
owned subsidiary requires huge cost and risk, so it is unfavourable. Create
joint venture with Brazilian company also not favourable due to transferring
the technologies. So, exporting is the best option for entering into Brazilian
market with Falcon 8X.
3.3 Identifying the international marketing mix for Brazilian market
International marketing mixes for Brazilian market are
price, place, product and promotion.
Product
Organisation makes plan about its product while takes
decision to enter into international market. Selecting the right product is
essential because different market holds demand of different products (Zou and
Fu, 2011). However, Falcon 8X jet is the most advanced and standardise product
which can satisfy the needs of Brazilian customers.
Price
Determining the appropriate price is very important because
customers are too much sensitive about price. Falcon 8X is highly technological
based product and its customers are little concern about price rather focuses
on the quality. So, market skimming pricing technique is suitable.
Promotion
Falcon 8X jet is not consumer product and its customers are
various multimillionaire individuals and aviation Service Company. Direct and
online promotion techniques are suitable for Brazilian market. Both English and
Portuguese languages are used in promotion.
Place
Falcon 8X jet will be sale through online market place and
direct marketing. The customer can negotiate with The company Aviation over
online and place their orders for Falcon 8X. The company will deliver the product to the Brazilian customer through import agent in Brazil.
3.4. Environmental and ethical issues in Brazil market
Environmental issue and ethical issue are two most talking
issues not only domestic business operations but also international business
operations. However, to ensure good corporate governance, every country has
established own rules and regulations. Besides these, various international guidelines
regarding environment and ethical matter also are needed to follow by the
organisations. Brazil is very strict to about environment issue and ethical
issue. However, the country has signed in Paris Climate Change Convention in
2015. Brazil also signed in anti-corruption legal framework of BRICS to make
sure ethical business practices (Kimberley, 2013). These issues should be considered
very seriously by the company while doing business in Brazil.
Dassualt Aviation can ensure ethical issue by following the
government rules and regulations regarding ant-corruption, CSR programme,
advertisement ethics, respect local culture etc. The company basically exports
Falcon 8X to Brazil, so environmental issue requires to give little concern.
Task 4
4.1. Describing the necessity to monitor international marketing plan
The nature of international market is dynamic than domestic
market. There are many importance of monitoring international marketing plan
such as;
- Firm has no control over the external environment in foreign market and they little bargaining power.
- Governments always try to protect domestic firms.
- Cultural conditions, demographic conditions, political conditions, and other issues have great influence on a foreign firm.
- To gain strong position against rivals strategies.
The Brazilian market is very competitive for aircraft
manufacturing companies. More than 60% aircraft market share is solely captured
by Embrear (Fisher, 2015). Boeing and Airbus are already doing competition with
Embraer. For these reasons, Dassault Aviation needs to continuously monitor
their international marketing plan to sustain in the competition in Brazilian
market. Otherwise, the company will be kicked out from the market with huge
loss.
4.2. Assessing the ways of controlling export channels
Export channel is the process through which a firm sells
their products or services to the final customers by using suitable
intermediaries in the foreign market. The types of products or services
influence on selecting the appropriate export channel. At least one importing
agent should need in the host country in export channel. The main advantage of
controlling export channel is that it ensures the flaws in export channel which
will reduce costs and delivery time.
Dassault can control its export channel by following ways;
- Maintaining the distribution channel small which reduce costs.
- Offering quality item to the customer effectively through suitable intermediaries.
- Appointing the import agent who has low bargaining power.
- Renewing the contract with the most efficient import agent after the expiry of the contract time.
4.3. Barriers to international marketing
International market is always challenging for various
reasons. The major barriers that the Dassault Aviation may face in Brazil are
as follows;
Cultural barriers:
This is very common barrier that every foreign firm will face in host country.
The cultural barrier arises due to language, ethnic group, belief, social
tradition etc.
Government policy:
Government tax policy, fiscal policy, and restriction on transferring profits to
home country for certain time etc. hampers in business operations.
Barrier from
competitors: The existing firms always discourage new competitors in the
market. They always try to create different obstacles such as file case into
the court to prevent the foreign firms operations in the market, reduce price
greatly which affect on the foreign firms etc. (Rugman and Collinson, 2012).
Bargaining power of
import agent: When the bargaining power of import agent is high, foreign
firms may face difficulty to export products.
Theses aforementioned barriers in Brazilian market will
affect on promotion strategies, pricing strategies, and competition strategies
of Dassault.
4.4. Assessing methods of communication with key international marketing personnel
Communication is the process to share opinion or views to
other. In business, communication is one of major parts of business operations.
There are various methods through which Dassault’s head office can communicate
with international marketing personnel.
Written communication:
Written communication by official letter, business memo etc. The advantage of
this method is that it gives formal documentation. The disadvantage of this
method is that it is time consuming to reach at the hand of international
marketing personnel.
Face-to-face: This
method can be conducted by meeting. The main advantages of face-to-face
communication are immediate response, express of feelings, suitable for group
discussion, increase interpersonal relationships etc. The disadvantages of this
method are difficult to practice in international marketing communication, not
effective in large gatherings etc.
Online communication:
This can be conducted through e-mail, Skype, social media such as Facebook,
Twitter, LinkedIn etc. The advantage of this method is full time connection
with the desired marketing personnel. This method is inappropriate in remote
location where no internet connection is available.
Oral communication:
This can be conducted via mobile phone
or land phone. The main advantage is quick contact with the require personnel.
It is costly which the main disadvantage.
All of these communication methods are used by top
management to communicate with international marketing personnel. Written
communication is used in formal occasions and other methods are used in
informal occasions (Newman, 2014). All methods have parallel importance to
Dassault’s communication process.
Conclusion
Every organisation’s motto is to gain maximum market share
and ensure sustainable growth. International market is always attracting
organisation to be a global brand. Entering into international market is not
easy for a firm because it requires several qualities such as unique features
of product, core competencies in operations, funds, selecting appropriate
foreign market, selecting appropriate international marketing strategies etc. Moreover,
the success of the international marketing also depends on selecting
appropriate entry method strategy, continuous monitoring of the strategies and
its appropriateness to defeat rivals. When an organisation can adopt all these
factors, it can able to compete in international market successfully.
References
Davis,
A. (2016) Dassualt Falcon 8X-buyer’s and
investor’s guide. [Online]. Available from:
http://corporatejetinvestor.com/articles/dassault-falcon-8x-buyers-and-investors-guide/
(Accessed: 31 March 2016).
Kimberley,
B. (2013) Brazil’s clean company act
continues the trend of increased risk exposure for companies operating in BRIC
countries. [Online]. Available from: http://corporatecomplianceinsights.com/brazils-clean-company-act-continues-the-trend-of-increased-risk-exposure-for-companies-operating-in-bric-countries/
(Accessed: 1 April 2016).
Newman,
A. (2014) Business Communication. 9th
Edition. Stamford: Cengage Learning.
Thompson, A., Peteraf, M., Gamble, J.,
Strickland, A. and Jain, A. (2014) Crafting
and Executing Strategy. 19th Edition. New Delhi: McGraw Hill
Education India Pvt. Ltd.
Zou, S. and Fu, H. (2011) International marketing.
Bingley: Emerald.
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